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ies develop worldclass suppliers in emerging markets ? Inter the interface for global supply chain information systems Forecast Comments ?“ ... lot of trouble finding capable suppliers…we?re going to our strategic suppliers and saying, ?Would you help us go over there.? And we?re linking them up with local smaller suppliers that either we find or they tell us about” ? “ … [interfacing] now through dedicated lines and through thirdparty works [across the globe].” 169。1998 . Kearney, Inc. All Rights Reserv ed 4 1 6 Global supplier development Purchasing/Supply Priorities Source CAPS 1997 Purchasing Executive Research ? Disagreement on promoting supply petitors ? Integrating supply chains extremely hard Forecast Comments ? Not developing petitive sourcing is hiding your head in the sand” ? Yet…“... can?t afford five to sixyear training period to get a supplier up to speed” ? “We have a hard enough time integrating within our own anization” ? “How do we bee one pany? We have CEOs with different personalities and panies with different goals” 169。1998 . Kearney, Inc. All Rights Reserv ed 4 2 Source development Purchasing/Supply Priorities Source CAPS 1997 Purchasing Executive Research ? Continued petitive bidding ? Supplier negotiations not bined with customer and/or labor negotiations Forecast Comments ?“ Even with longterm contracts you need to validate market price.” ? “In the electronics industry, it is very difficult to know what the price should be without petitive bidding” ? “... have to bid everything so taxpayer sees we are benchmarking” ? “It?s hard enough to negotiate contracts with single suppliers” ? “Different skill sets are needed” 3 169。1998 . Kearney, Inc. All Rights Reserv ed 2 Competitive bidding and negotiations Purchasing/Supply Priorities Source CAPS 1997 Purchasing Executive Research ? Negotiations not more “heated” or petitive ? Winwin negotiations will not end Forecast Comments ?“ Negotiations do not seem as heated because the emphasis is on relationships. However, [negotiations] are not any less important” ? “If you?re not successful then the supplier is not successful — so it?s either winwin or loselose” 3 169。1998 . Kearney, Inc. All Rights Reserv ed Negotiation strategy Purchasing/Supply Priorities Source CAPS 1997 Purchasing Executive Research ? Dominant panies influence sourcing decisions of first, second and thirdtiers ? Increased relationship plexity as resources shared Forecast Comments ?“ We influence the second and thirdtier buyers because we can use our leverage to buy at better prices” ? ... a supplier who is also our customer has millions of dollars of our equipment and is using that ...to gain concessions ” ? “When personnel [in a corporate relationship] are shared, tax laws and benefits create plexity” 3 169。1998 . Kearney, Inc. All Rights Reserv ed 2 1 Complexity management Purchasing/Supply Priorities Source CAPS 1997 Purchasing Executive Research Center For Advanced Purchasing Studies . Kearney, Inc. National Association of Purchasing Management