Strategic sourcing: Best practices from Motorola, Honda and Toyota

Abstract

Purpose

Reviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

Lessons from the total quality management (TQM) movement and the implementation of just‐in‐time (JIT) logistics practices have long since taught strategists that in purchasing it really is about much, much more than the price. The prophets of quality rightly pointed to the massive costs to the organization of price‐focused purchasing. In the West Motorola were among the early adopters of TQM approaches in urgent response to the “Japanese threat”. The JIT movement, spinning out of the Toyota Production System highlighted the strategic impact of purchasing in an environment where inventory is kept low releasing cash, a pull system uses kanban processes to efficiently keep the whole value adding process lean.

Practical implications

Provides strategic insights and practical thinking that have influenced some of the world's leading organizations.

Originality/value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to‐digest format.

Citation

(2005), "Strategic sourcing: Best practices from Motorola, Honda and Toyota", Strategic Direction, Vol. 21 No. 11, pp. 29-32. https://doi.org/10.1108/02580540510630722