(p. A13) n “Profit From the Source,” four Europe-based partners at Boston Consulting Group—Christian Schuh, Wolfgang Schnellbächer, Alenka Triplat and Daniel Weise—make the case for drastic change. Procurement, they assert, has been badly neglected: “When the boss offers someone a job in procurement, they know they’re on the fast track to nowhere.” Top executives, they claim, spend far too little time with suppliers, even though purchasing swallows more than half of the average company’s budget. “That’s a mismatch with potentially existential consequences,” they write. Instead, they insist, companies should put procurement at the center of corporate strategy.
. . .
Serving up familiar stories about the likes of Apple and Tesla, the authors write admiringly: “The world’s most successful companies . . . make virtually nothing themselves. They are, in effect, the consumer-facing, brand-owning centripetal force at the core of a business ecosystem.” But many companies have been moving in the opposite direction. In recent years, Facebook (now Meta) began designing chips for the servers in its data centers; Costco built a slaughterhouse to ensure its stores’ supply of chickens; and Cleveland-Cliffs bought steel mills to supply from its iron mines. Much of the business world seems to think that outsourcing has gone too far. Should the chief procurement officer help identify ways to bring parts of the supply chain back in house? The authors don’t say.
For the full review, see:
(Note: ellipsis between paragraphs, added; ellipsis within paragraph, in original.)
(Note: the online version of the review has the date July 28, 2022, and has the title “BOOKSHELF; ‘Profit From the Source’ Review: Consider the Supplier.”)
The book under review is:
Schuh, Christian, Wolfgang Schnellbacher, Alenka Triplat, and Daniel Weise. Profit from the Source: Transforming Your Business by Putting Suppliers at the Core. Boston, MA: Harvard Business Review Press, 2022.