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Showing posts from July, 2012

Leveraging Strategic Sourcing to Impact Your Bottom-Line Quickly

Jon Stegner’s famous article “Gloves on the Boardroom Table” is a classic example of not just leaders in denial (for my business school friends) but also the opportunity in procurement – specifically, strategic sourcing.  The article can be found here.  I’ll downplay the leaders in denial aspect in favor of the Supply Chain benefits in the article – Jon describes the opportunity in cost savings opportunities within his organization.  Convinced of significant savings opportunities, Jon tasked his summer intern to gather various gloves (yes, something so simple) across the factories in his organization, and what he found was staggering… FOUR HUNDRED TWENTY-FOUR different gloves were being used across the factories.  Many of the gloves were similar but their costs could vary greatly.  In one case, two gloves which were nearly identical were marked one for $3.22 and the other $10.55.  Jon Stegner proceeded to lay out all 424 gloves on the boardroom table for his peers to witness the oppor…