Global Sourcing and Logistics
Global Sourcing and Logistics Global Sourcing and Logistics
Guiding principles Accenture's approach – During the opportunity assessment phase of every global sourcing and logistics project, Accenture applies five principles to drive success. Principle 1 Rapidly identify potential categories and low-cost country locations By capitalizing on Accenture's in-depth knowledge and proven experience in category assessment, your organization can kick off a global sourcing and logistics project with a tailored set of best low-cost country supplier options. Furthermore, by applying our lowcost country prioritization and "should cost" modeling tool, we can help you identify the right categories to pilot. Principle 2 Leverage the category expertise built by Accenture's global network Early involvement with Accenture's global sourcing and logistics network ensures that fixed resources from each region impacted are deployed to your project team. Accenture's category experts and skilled sourcing professionals worldwide assure rapid scalability and constant focus on results. 8 Principle 3 Guarantee a business case for moving forward and an appropriate implementation plan Accenture coordinates the activities of engineering and quality management, together with procurement, to agree total cost and identify risks for each category with its certified best suppliers in each region. Accenture's global sourcing and logistics methodology helps companies develop a robust plan for global sourcing and logistics that includes taking selected suppliers onboard for pilot categories. By taking a holistic view of the global supply chain and leveraging our international trade assets and capabilities, Accenture will include in the plan logistics solutions uniquely suited to each of our client’s sourcing circumstances and strategic goals. Principle 4 Mandate in-house procurement professionals to secure data and transfer knowledge Accenture works with integrated, crossfunctional teams from your company to conduct workshops for each major project milestone. All project activities and outcomes must be accurately communicated and documented. Principle 5 Integrate new suppliers into the supply chain and optimize the flow of physical materials Accenture minimizes disruption and optimizes the supply chain by fully integrating new suppliers and managing logistics and distribution requirements, from the moment the goods leave a supplier's yard until they arrive at your gate. Using Accenture’s structured approach, testing and homologation can be accelerated and greater visibility achieved.
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. 9
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How to achieve success<br />
The success of a global sourcing<br />
<strong>and</strong> logistics project is strongly<br />
influenced by the dedicated<br />
central <strong>and</strong> low-cost country<br />
project resources. These<br />
resources, with their focused<br />
efforts <strong>and</strong> strong drive for<br />
results, can provide<br />
measurements of clear bottomline<br />
key performance indicators<br />
<strong>and</strong> help your organization<br />
reap rewards. To achieve<br />
success in global sourcing <strong>and</strong><br />
logistics, Accenture has<br />
identified four crucial areas.<br />
Sponsorship from senior management <strong>and</strong><br />
strong program management<br />
Active commitment <strong>and</strong> direct involvement<br />
by senior decision makers fosters swift<br />
decision-making <strong>and</strong> ensures a "top down"<br />
approach to communicating results <strong>and</strong><br />
deliverables throughout the organization.<br />
A structured global sourcing <strong>and</strong> logistics<br />
methodology should be employed using<br />
strong program management that utilizes<br />
cross-functional teams with specific<br />
project-oriented targets to achieve<br />
implementation plans.<br />
Categories should be addressed broadly <strong>and</strong><br />
strategically<br />
Project resources must be dedicated <strong>and</strong><br />
skilled with expert knowledge of the<br />
category. The global sourcing <strong>and</strong> logistics<br />
approach should be broad enough in scope to<br />
truly make a difference but also impact the<br />
bottom line. Category purchasing strategy<br />
<strong>and</strong> cost modeling should be built into the<br />
equation with an eye for all possible cost<br />
reduction opportunities (st<strong>and</strong>ardization,<br />
volume consolidation, change to<br />
specifications <strong>and</strong> so on). Companies must<br />
make decisions based on all aspects of the<br />
categories, conduct fact-based <strong>and</strong> crossfunctional<br />
negotiations, <strong>and</strong> dedicate<br />
resources in engineering to anticipate <strong>and</strong><br />
focus on selected actions.<br />
Local presence <strong>and</strong> expertise<br />
Dedicated resources in local markets are<br />
required to build effective sourcing<br />
relationships with potential suppliers.<br />
Expertise in local markets <strong>and</strong> business<br />
practices will ensure the implementation<br />
phase is successfully managed <strong>and</strong><br />
continues to integrate <strong>and</strong> strengthen<br />
the supplier relationship.<br />
Change management to build structural<br />
capability<br />
Identifying local suppliers is only one aspect<br />
of a successful global sourcing <strong>and</strong> logistics<br />
strategy. Often, companies experience<br />
internal resistance to h<strong>and</strong>ling the issues that<br />
may arise with low-cost country sourcing<br />
suppliers. A strong change management<br />
program that focuses on aligning the hearts<br />
<strong>and</strong> minds of your operational team can help<br />
to build confidence in the low-cost country<br />
sourcing journey <strong>and</strong> creates further dem<strong>and</strong><br />
that continues to improve relationships.<br />
9
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