"How Best in Class Companies Embrace Operational Excellence to Drive Procurement and Supply Chain Performance"
Enterprises today are under enormous pressures. They must keep supply chain costs low, innovate with new products and services, and respond to rapid changes in how products are marketed and sold, while executing their operations within an increasingly volatile, complex world. Responding to all these pressures and executing well in these volatile times makes operational excellence imperative.
Many leading companies have adopted Operational Excellence programs that establish a framework for supply chain performance improvement. While there are many definitions of Operational Excellence and various approaches to excellence programs, at its core, Operational Excellence is about creating value for the enterprise on a continuous, measurable basis. Value can be derived from lower procurement costs, a more resilient, risk tolerant supply chain, and improvements in customer service. As the world becomes more e-commerce driven, value also is created by excelling at logistics and fulfillment, being first to market with new products, and by rapidly capturing new channel opportunities
Operational Excellence and Procurement Excellence programs vary by company, but they might span all these areas of value creation and more. While reducing the cost of purchased materials is a high priority for most companies, Procurement Excellence programs might also address priorities such as supply chain risk and resiliency, supplier management, and leveraging partnership agility to capitalize on new markets, or corporate sustainability objectives.