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There are many paths that can lead an organization to determine that outsourcing is the right strategy for improving the long-term viability of its IT operations.

For some, it is primarily a cost decision. For others, cost is an important factor, but there are other pressing needs, such as dramatically improving day-to-day delivery or transforming the environment in response to changing business priorities. Depending on the organization’s unique circumstances, their IT sourcing strategy may encompass one or more delivery towers, include one or multiple providers, and require a short or a long transition period. Culturally, you may need to also consider how much control to retain.

Published in Best Practices
Apple has told prominent environmental activists in the U.S. and China that it will soon allow independent environmental reviews of at least two suppliers' factories in China, the activists said. Environmental examinations would be separate from an independent probe of working conditionsat the Chinese factories of Apple suppliers, including Foxconn Technology, that began last week.
Published in Corporate

Lean

Lean companies need only half as many employees in their purchasing department as non-lean companies.

By Becky Partida, knowledge specialist, supply chain management, APQC

With a renewed focus on "doing more with less," many organizations are looking at how the adoption of lean processes can increase efficiency and thus grow their bottom line. Lean programs within manufacturing companies are often focused on the production side of the business. This can offer substantial benefits for the organization, but the adoption of lean does not have to stop there. Lean programs within more administrative functions of an enterprise, such as procurement, can result in benefits as well.

APQC's Open Standards Benchmarking in procurement asks respondents to indicate whether their organizations have initiated lean process development in their procurement functions. To analyze how adopting these types of processes affects procurement performance, APQC looked at the number of full-time equivalent (FTE) employees needed to order materials and services per $1 billion in purchases for organizations that have adopted lean processes in procurement and for organizations that have not adopted these processes. The results provide insight into how lean processes can affect the efficiency of procurement functions. Read full article on IndustryWeek...

Published in Best Practices

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