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Value analysis for strategic sourcing
Strategic sourcing programmes often meet deep resistance during the design and implementation phases. Objectives amongst departments are potentially conflicting: when marketing/sales intend to develop innovative solutions and offer a large range of products, purchasing/ manufacturing push to reduce diversity. Value analysis methodology is then a powerful tool to align all stakeholders around a common objective and achieve an optimum balance.
How BearingPoint brings value
Value Analysis reconciles the dynamic tension between marketing/sales and purchasing/manufacturing by asking:
How does the customer perceive the function?
Does this function provide competitive advantage?
How much does this function cost?
What are the associated indirect costs?
Three key conditions need to be fulfilled before launching this type of programme:
Strong involvement of the top management, with a quantified objective of ambitious savings
A cross functional work-stream, including all departments from R&D through to marketing
Deep collaboration of key suppliers according to predefined rules
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