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The Business Units Want a True Partner–Can Your Supply Chain Step Up?

December 24, 2015

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When financial performance tumbled well below the expectations of shareholders at a US-based manufacturer of industrial parts, the new head of supply chain saw ways to make the supply chain part of the solution.

The firm was struggling to manage costs and still meet commitments on multiyear contracts with customers. It did business with thousands of suppliers, even though only a handful accounted for the vast majority of spending. Decision making to award new work to suppliers was fragmented among individual product lines, undercutting the firm’s scale advantages.

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