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MARKET DRIVERS - Strategic Sourcing

Strategic sourcing has changed manufacturing. Product life cycles are shrinking, consumer demographics are changing, consumers are behaving less predictably, and economic events ripple through markets very quickly. For survival, Corporations, suppliers, local distributors and retailers must be prepared to react to – and preferably predict – change. Failure to do so results in costly write-offs, stock-outs, and loss of market share. In this environment, where suppliers will be expected to bear the brunt of cost reductions and innovation while increasing quality and capacity levels, selection becomes a strategic decision – thus the term strategic sourcing - based on its measured value to the entire supply chain. NMMI’s Business Model addresses the Corporations’ Strategy and Planning, Demand and Supply Management, Execution, and Analysis alignment requirements of its suppliers.

DEMAND DRIVEN SUPPLY FLOW

“Developing suppliers is expensive and requires someone with the expertise to build and sustain a small manufacturing concern as NMMI is doing. I hope my manufacturing colleagues see this as a valuable tool and will join in to make this the successful organization it can be.”

Pat Hanes
Supplier Diversity Director
International Truck and Engine
Chairperson, Chicago Business Development Council

 

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