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The Purchasing Machine, by supply-management professionals Dave Nelson, Patricia E. Moody, and Jonathan Stegner, presents a strong argument for the growing importance of this highly specialized facet of the manufacturing process--incorporating "purchasing, money and material flows, ownership of acquisition and sourcing strategies, and even intellectual property movement and control"--along with a series of related measures that could carry companies to the top in years ahead. It also focuses on the leadership skills necessary to make them a reality. The authors admit that their best-practice companies (American Express, Flextronics, Whirlpool, Harley-Davidson, IBM, John Deere, Honda of America, Sun Microsystems, SmithKline Beecham, and DaimlerChrysler) aren't perfect in all areas, as evidenced by the recent tribulations of the latter automaker. But each has learned to excel in a particular area, such as customer relations or systems innovations, and the authors describe them and ways their examples might help others cut costs and turn resultant savings into "lower consumer prices, exciting products, or fatter shareholder returns." Nelson, Moody, and Stegner identify 20 of these best practices (such as Training, Supplier Information Sharing, and Loaned Executives), and show how "the discipline of acquiring and moving material" can be turned to strategic advantage. --Howard Rothman
Book Description
Every day companies leave billions of dollars in invisible, unrealized savings on the table because of poor supply chain management practices. Now supply management experts Dave Nelson, Patricia E. Moody, and Jonathan Stegner show not only how leading companies recoup these savings through their mastery of target costing, value engineering, and supplier development, but how supply chain management -- the discipline of acquiring and moving material -- has become a manufacturing company's hottest competitive weapon.
Based on a survey of 247 purchasing managers and more than 1,000 hours of interviews and on-site visits, the authors have selected ten top firms whose supply management pioneers excel at twenty "best practices." With cases and stories, Nelson, Moody, and Stegner show how these leading-edge purchasing departments at American Express, SmithKline Beecham, DaimlerChrysler, Harley-Davidson, Honda of America, IBM, John Deere, Whirlpool, Flextronics, and Sun Microsystems have put into place pathbreaking processes and procedures. Here, for example, described in step-by-step detail, are Chrysler's SCORE program and Honda's strategic sourcing strategy that saved the companies billions. The book also includes a crucial section on the next stage of supplier development that will involve the sourcing and allocation of ideas as well as materials.
The authors provide concrete, practical steps to improvement that any supply chain manager can take to successfully implement these best practices. The Purchasing Machine will be required reading for logistics, purchasing, and procurement managers in hundreds of thousands of companies. The authoritative nature of the authors' source material is certain to make this the single most important and practical reference on best purchasing practices for years to come.
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Every day, businesses leave hard-earned dollars on the table that could have yielded lower consumer prices, exciting new products, or fatter shareholder returns. These companies don't even notice that cash is slipping away at the far end of the supply chain -- procurement, design, and development. The key to saving these dollars is to become proficient in target costing, value engineering, and supplier development -- "the new basics of supply management". The Purchasing Machine describes the costs, benefits, implementation, and results of the twenty best practices that must be in place in order to achieve world-class supply management objectives. These include cost management, value analysis, delivery improvement, supplier quality circles and support services, and purchasing systems. Led by Dave Nelson, the authors profile the top ten purchasing organizations -- including DaimlerChrysler, Honda of America, Harley Davidson, IBM, and John Deere -- and show how they have succeeded. Their book is a vital resource for all logistics, purchasing, and procurement managers who want to understand how to make their company both smart and rich.
Customer Reviews:
Disappointing Book.......2007-08-11
There is very little to offer supply management professionals in this book. It is poorly written and the examples are of minimal value. It is clear that the authors are really only comfortable in large manufacturing environments. I am disappointed I paid good money for this book.
How the Top Ten Companies Shouldn't Manage Their Chains.......2005-05-06
As a senior management exec, I'd have to say that this book was of no help at all. Although it has helped the supposed top ten companies with purchasing, I have used a completely different strategy using simple purchasing techniques. I suggest you read, "Managing and Purchasing Problem Solvers" by Jonathan T. Monczka. This book is much more efficent describing management principles clearly. I do not reccomend "The Purchasing Machine" at all.
Very Average.......2002-06-22
As a purchasing professional, I turned to this book to gain insight to new or advanced purchasing practices that might help me in my work and I was very enthusiastic about the book when I began reading it. Instead of new knowledge, I found repetitive stories about the mass production environments in the automotive and related industries. Although some new thoughts or ideas were presented, I did not feel as if this book taught me anything novel or cutting edge. It is simply a repeat of purchasing concepts that can be found in many other operations or supply chain books flavored with managerial buzz words and the self-glorifying personal success stories of the authors and the companies they work for. If you work in a job shop environment or for a small to medium size business, this book is virtually useless. If you are in a huge mass production environment with a large budget, it might be of some value, but my guess is that you would already be familiar with the concepts presented.
Lots of words, little content.......2001-10-22
Ifyou are looking for a "how to" book, look somewhere else. This book appears to have only general rules of the thumbs , wrapped in lots of manager lingo (people resource allocation, globalization, etc.) Overal very disapointing. The only positive side are the occasional industry examples, but there are not enough of them to make this book a good buy.
And where is the beef?.......2001-10-01
Based on an extensive research project this book promises a lot but delivers nothing. The first thing that you have to recognize is that there is hardly any structure at all. Repitions abound without adding any value. The style of writing is close to unbearable - they could have put the contents into a fourth of the pages. The cases are sketchy at best; they claim to offer best practices but are nothing new. The book tries to look into the future and puts forward a wildly speculative view of what the authors think lies ahead; again they do not offer a vision but describe the status quo in future tense. For people who like real satire I recommend Moody's Harley Davidson poem! Summary: Only recommended for those who need to own every book on the subject...
Average customer rating:
- Has Chris Roush Ever Worked There?
- Disappointment
- Does not tell the real story
- what a joke
- A good behind-the-scenes objective take on HD
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Inside Home Depot
Chris Roush
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Chris Roush nails down Home Depot in this unauthorized portrayal of the retailing titan. Inside Home Depot shows how cofounders Bernie Marcus and Arthur Blank over the past 20 years built their business from two stores in Atlanta into 650 outlets--the world's largest home-improvement retail chain. Roush, a veteran business reporter, finds that much of Home Depot's astonishing financial success comes from its strong "bleeding orange" culture. Home Depot fosters loyalty among workers with the best pay in the industry, generous stock-purchase plans, and first-rate training in home improvement and customer service. Incredibly enough, Blank, the company's chief executive, still spends a third of his time personally training employees--unthinkable for any other CEO of a multibillion-dollar company. Roush also examines plenty of defects. Home Depot was so macho that it could be a house of horrors early on for its women employees: the company paid $104.5 million to settle sexual-discrimination lawsuits.
The author points out that the company's hegemony is threatened by competitors like Lowe's and community activists who fear that Home Depot means suburban sprawl and schlock. Nevertheless, Roush predicts that Big Orange, which is experimenting with new home-design and rural stores, will become even more ubiquitous in the future:
Home Depot has only just begun to build itself into a retail power. With each customer that enters its orange-colored doors and walks its vast aisles, buying do-it-yourself items to repair roofs and fix leaky faucets, Home Depot hammers away.
Business managers, investors and customers of Home Depot will enjoy reading this inside story about one of America's top-10 retailers. --Dan Ring
Book Description
"Reads like a novel, yet serves as a how-to guide for creating a customer culture and marketing strategies that wow Wall Street...I recommend this book as priority reading for all retail executives." Kurt Barnard, President, Barnard Retail Trend Report and Barnard's Retail Consulting Group.
Admirers, competitors, industry and Wall Street analysts alike are intrigued with the question of what makes Home Depot so special. What, exactly, does this giant do that so clearly distinguishes it from the competition? How does Home Depot culture and customer service work? And, most importantly, what lessons can every business learn from the Home Depot example? INSIDE HOME DEPOT takes you behind the scenes to discover the secrets of success of this retail giant how, in just twenty years, Home Depot has not only changed the way hardware is sold, Home Depot has also elevated the superstore concept to a new level of success, inspiring both admiration and fear in the retail community. Relying on inside access to Home Depot's training programs, interviews with key employees both past and present, and meticulous investigative journalism, Pulitzer Prize nominated journalist Chris Roush presents the first uncensored book about how this company has become so successful, and isolates the practical lessons that readers can apply to any industry.
Download Description
A prize-winning journalist uncovers how Home Depot's rapid rise and revolutionary strategies dominate an entire industry.
Customer Reviews:
Has Chris Roush Ever Worked There?.......2007-05-30
I dought it! If he had, I don't think he would have written what seems to be a glowing book about Home Deephole. I worked there for about a month and quit because of all of the damn lies and jerking me around they did.
They promised me a certain pay...screwed me, certain days off...screwed me, to work in the department said...screwed me again, to have someone train me by THEIR own rules...NOPE, and so on! They re-nigged on almost everything they promised! The turn-around there was a testament to their bad management, at least in that store in the area. My FIRST DAY they left me by myself at a busy time and had not trained me on their computer invetory or phone system, didn't leave me any keys or codes to anything so I could get customers merchandise they wanted and on and on. They have more rules than Carter has liver pills but don't follow them themselves but BLAST you if YOU don't follow them! I'm getting pissed again thinking about their BS.
They DO NOT pay well and that's a fact! Don't believe me...go apply. Do they pay better than anyone else in the industry...maybe, I don't know, I quit trying Retail as most of them don't pay worth a damn anyway! You are expendable...especially in retail. Get a good education (college degree) or good training in some field and stay away from retail if possible.
I take back what I said about pay...sort of. If your the CEO of the Deephole, then I guess you would get paid VERY WELL by possibly cooking the books and taking outrageous salaries while paying your help below poverty wages! Ahhh...what a world.
Disappointment.......2006-12-26
This book is a disappointment. The author tends to drag out his writing, which makes you want to skim parts of the book. The book needs to be peppier. It's not near as interesting as Built From Stratch by Bernie Marcus and Arthur Blank (1999) wrote about founding and running Home Depot. If you want to read an entertaining and more insightful book and spend your leisure hours more enjoyably read Built From Stratch.
Does not tell the real story.......2005-02-25
Home Depot is a place now where desperate employees come after being laid off from good jobs, are paid poverty-level wages, poorly trained and thrown out onto the sales floor to bear the brunt of customer heat. It is a company of metrics where if the employee does not measure up to the metrics,even if providing tremendous service to its customers, that employee is penalized.
It is a company where employees are charged $9.25 for a copy of their W-2 and where the smallest deviations from the work schedule result in a demerit system which can end in termination of the employee.
It is an environment where if an employee is given too much work in the time allotted they are blamed and when trying to defend themselves asked "what is the maximum effective range of an excuse?"
it is no longer a company encouraging employee free-thinking or innovation and does not appear to share original values of the founders of the business who retired wealth yand without worry.
what a joke.......2003-10-03
This is obviously just the work of a home depot corporate hack. Home despot has a reputation for one thing: lousy, rude, and insulting service. While contractors can deal with this, the home consumer always leaves Home despot frustrated and unhappy.
I'm sure Enron executives could write books on how ethical, enlightened and customer friendly Enron is, too. That doesn't mean anyone should waste a nickel or a minute reading them.
A good behind-the-scenes objective take on HD.......1999-10-24
Although I'm not an HD fanatic or investor, I found this book a good account of what makes this company tick. Given that it was done without the founders' cooperation, that is an even more amazing feat. I disagree that the book reads poorly; on the contrary, I found it an quick read, well organized and on point. Highly recommended.
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This casebook provides detailed information on corporate law. The casebook provides the tools for fast, easy, on-point research. Part of the University Casebook Series®, it includes selected cases designed to illustrate the development of a body of law on a particular subject. Text and explanatory materials designed for law study accompany the cases.
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Includes a combination of explanatory text, cases, and problems that permit the professor to use either a problem-based approach or a more traditional case-based approach. Ample explanatory text orients students to the issues and helps them bring a basic understanding of the material to each class session. Most of the problems and much of the explanatory text are based on a continuing hypothetical case of Foam Corporation, a distressed manufacturer. The goal is to provide a concrete setting for the application of bankruptcy law and the consideration of bankruptcy policy.
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A solid Chapter 11 Hornbook.......2007-01-26
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The Incredible Payback: Innovative Sourcing Solutions That Deliver Extraordinary Results
The Sourcing Solution: A Step-By-Step Guide to Creating a Successful Purchasing Program
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