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Frédéric Pichard, CSC - SRM Barometer results part2

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Sustainable development is an exceptional opportunity for each and every company. First of all, it offers an opportunity for brand image. An opportunity for innovation. An opportunity for risk management also. And finally, it offers an opportunity for expanding to new markets. Once again, the crisis provides companies with the occasion to reconfigure their logistic organization, by taking two priority requirements into consideration: the obligation to adapt to new environmental regulations and the obligation to save money. It is of no surprise to us that the TNS Sofres survey corroborates the fact that both regulatory and economic pressures disrupt our companies. In conclusion, procurement and the supply chain are considered as highly-essential catalysts for the competitiveness of the company. Based on an accounting standpoint, a 1% reduction in company procurement budget can generate an increase of up to 10% profit. Moreover, quite a few leading groups were spot-on at this level, and set standards for procurement, even though they were occasionally at risk of hampering their capacity for innovation and their capacity to adapt to market change. Each of us constantly bears in mind the recent corporate bankruptcy of the world’s largest car manufacturer, even if this reason was not the only reason of its downfall. Nevertheless, at CSC, we believe innovation and the creation of value to be highly compatible with cost control. The crisis, understandably, obliges us to lower our costs, but it also obliges us to do it unitedly. Rather than instigating ongoing buyer/seller encounters, our aim is to pool together individual intelligences to eliminate every single element that costs a lot but offers nothing in return. Yet again, we observe that the crisis is an exceptional opportunity, for procurement and for the supply chain. It offers the opportunity to initiate an economic model, which focuses on more systematic and more in-depth partnering. In stating this, I specifically have in mind the example of Toyota and its exemplary operational strategy, which incorporates its ecosystem. To sum up, inter-company power struggles must, henceforth, be replaced by more frequent and more in-depth partnering.

Video Details

Duration: 3 minutes and 59 seconds
Country: France
Language: French (France)
Genre: None
Views: 87
Posted by: cscideas on Jan 15, 2010

Frédéric Pichard, manager CSC, is discussing the SRM Barometer results and the new trends within procurement and logistics department

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