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Executives are looking for the next generation sourcing model
The new purchasing operating model is based on three key pillars
Cost standards are integral to the approach and are a powerful way of managing supplier target costs, year on year improvements and engineering changes
One way to build ideal costs is from process based cost standards that capture best-in-class costs and help estimate component cost
Knowledge is captured on an on-going basis across the global organization to provide deep insight into material costs and conversion costs …
The same cost table approach is used to manage engineering changes and to avoid cost walk-ups by the supplier
The ultimate goal of understanding ideal performance is to engender
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