Developing Sourcing Capabilities: Creating Strategic Change in Purchasing and Supply Management

"This book is a milestone. It captures the essence of theory andpractice that has evolved in purchasing and supply management sinceit was put on the strategic management agenda in the 1980s untiltoday. It addresses the key question we all struggle with: how tomake it happen and tackle the forces that often prevent it fromhappening? The authors′ explanatory models provide more than atheoretical framework they deal with change, areas ofchange, methods of change and circumstances preventing change.Leading edge practices are discussed and the whole book highlightsthe excitement in purchasing and supply management as anopportunity to develop competitive advantage, also in the best–runcompanies! Good reading for executives, for consultants andparticularly for those of us who prefer to make it happen withoutconsultants!"
Halvar Jonzon, Group Vice President,Purchasing & Supply Base Management, Autoliv Inc. – TheWorldwide Leader in Automotive Safety Systems

"For possibly the first time this book provides a detailed roadmap of how organizations can develop and capture the fullest valuefrom their procurement and supply chain management functions. Bygathering source materials from a wide range of academic andbusiness based sources, the authors have been able to identify andobjectively assess leading edge practices. In addition, thecritical success factors and environment required to deliver theresults are developed and discussed. The specific case studiesincluded provide some real life examples of how change has beenachieved and the benefits which have accrued from those changes.This is required reading for procurement and supply chainprofessionals who are looking to move their functions and peopleprogressively towards the strategic range of the performancespectrum. It is also required reading for executive managementwanting to make the most significant impact to their bottomlines."
Tony Pollock, VP Global Procurement & RealEstate Operation, Unisys Corporation

"By reading this book you will be able to better understand howyou can manage change in purchasing and supply management. Inwriting this book, the authors have drawn on both theirconsiderable academic knowledge and practitioner networks. Thismakes this book a unique blend of pragmatic theory and structuredapplication. The reader will benefit from the many case examplesthat are included in the text. I am sure that the book generates awealth of ideas for you on how to develop sourcing capabilities. Amust read!"
Willem van Oppen, Chief Procurement Officer,KPN Royal Dutch Telecom

List of contributors vii

Foreword xi

Preface xiii

PART I: INTRODUCTION 1

1 The case for change 3
Bjorn Axelsson, Frank Rozemeijer and Finn Wynstra

2 Exploring change issues in strategic sourcing 15
Bjorn Axelsson, Frank Rozemeijer and Finn Wynstra

3 Understanding strategic change 33
Henrik Agndal, Bj¨orn Axelsson and Leif Melin

PART II: AREAS AND INSTRUMENTS OF CHANGE 59

4 Developing the supply base by changing supplier relations61
Anna Dubois and Finn Wynstra

5 Organizing for strategic sourcing 87
Frank Rozemeijer and Finn Wynstra

6 Leadership and values for competitive sourcing 107
Ethel Brundin, Leif Melin and Bj¨orn Axelsson

7 Developing and managing knowledge and competencies 135
Bjorn Axelsson, Pieter Bouwmans, Frank Rozemeijer and FinnWynstra

8 Change through leveraging information and communicationstechnology 169
Jens Hultman and Bjorn Axelsson

9 Supporting change through performance measurement 189
Bjorn Axelsson, Finn Wynstra and Frank Rozemeijer

10 Coping with individuals resistance to change 215
Marc Reunis, Sicco Santema and Frank Rozemeijer

PART III: ILLUSTRATIONS 237

11 The reality of organizing for purchasing synergies 239
Arjan van Weele

12 From buying to supply management at Nordic ConstructionCompany (NCC) 257
Bjorn Axelsson

13 The supply function s role in a major corporateturnaround: Lessons from Thomson 291
P. Fraser Johnson and Michiel R. Leenders

14 Strategic change towards global sourcing: Ericsson in China305
Tony Fang and Bjorn Axelsson

PART IV: REFLECTIONS 323

15 Synthesis and reflections 325
Bjorn Axelsson, Frank Rozemeijer and Finn Wynstra

Index 331

Björn Axelsson is a tenured professor at StockholmSchool of Economics (SSE) and the first occupant of the Silf Chairof Purchasing and Supply Management at the school.

Finn Wynstra is currently NEVI Professor of Purchasingand Supply Management at RSM Erasmus University, Netherlands, andhas previously worked at universities in Sweden, the UK and theUS.

Frank Rozemeijer is presently working as a part–timelecturer in Purchasing Management at RSM Erasmus University,Netherlands. He also runs his own purchasing consulting firm calledFrconsulting, focusing on developing purchasing organizations.

"...comprehensive..." (Supply Management, 17th November 2005)