Global Sourcing and Logistics

How to achieve success
The success of a global sourcing
and logistics project is strongly
influenced by the dedicated
central and low-cost country
project resources. These
resources, with their focused
efforts and strong drive for
results, can provide
measurements of clear bottomline
key performance indicators
and help your organization
reap rewards. To achieve
success in global sourcing and
logistics, Accenture has
identified four crucial areas.
Sponsorship from senior management and
strong program management
Active commitment and direct involvement
by senior decision makers fosters swift
decision-making and ensures a "top down"
approach to communicating results and
deliverables throughout the organization.
A structured global sourcing and logistics
methodology should be employed using
strong program management that utilizes
cross-functional teams with specific
project-oriented targets to achieve
implementation plans.
Categories should be addressed broadly and
strategically
Project resources must be dedicated and
skilled with expert knowledge of the
category. The global sourcing and logistics
approach should be broad enough in scope to
truly make a difference but also impact the
bottom line. Category purchasing strategy
and cost modeling should be built into the
equation with an eye for all possible cost
reduction opportunities (standardization,
volume consolidation, change to
specifications and so on). Companies must
make decisions based on all aspects of the
categories, conduct fact-based and crossfunctional
negotiations, and dedicate
resources in engineering to anticipate and
focus on selected actions.
Local presence and expertise
Dedicated resources in local markets are
required to build effective sourcing
relationships with potential suppliers.
Expertise in local markets and business
practices will ensure the implementation
phase is successfully managed and
continues to integrate and strengthen
the supplier relationship.
Change management to build structural
capability
Identifying local suppliers is only one aspect
of a successful global sourcing and logistics
strategy. Often, companies experience
internal resistance to handling the issues that
may arise with low-cost country sourcing
suppliers. A strong change management
program that focuses on aligning the hearts
and minds of your operational team can help
to build confidence in the low-cost country
sourcing journey and creates further demand
that continues to improve relationships.
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