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Profit from the Source: Transforming Your Business by Putting Suppliers at the Core Hardcover – June 21, 2022

by Christian Schuh (Author), Wolfgang Schnellbacher (Author), Alenka Triplat (Author),
4.3 out of 5 stars 92 ratings
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Procurement can be your company's secret weapon for winning in turbulent times.

In most companies, procurement is an unglamorous, unloved part of the business. A job in the procurement office? A fast track to nowhere. Sourcing and supplier management is strictly about costs, the thinking goes, and all that matters is playing hardball to get these as low as possible. No connection to innovation or strategy or creating positive value.

Not so fast. As Boston Consulting Group thought leaders Christian Schuh, Wolfgang Schnellbächer, Alenka Triplat, and Daniel Weise explain in Profit from the Source, procurement should be regarded in a new light, because it has the potential to be a CEO's secret weapon in these fast-moving, disruptive times. The authors offer a wake-up call and a new strategic blueprint for leaders everywhere. With vivid stories and in-depth case studies, they illustrate that no other business function offers the same holistic view of a company—from suppliers who provide the organization with raw materials and components to consumers who buy the finished product. While it's true that a core task of any procurement function is to keep costs from spiraling out of control, the authors show how procurement can help businesses generate phenomenal value from five other sources of competitive advantage critical to success—innovation, quality, sustainability, speed, and risk reduction.

Drawing on BCG research and the authors' firsthand experience working with some of the world's leading companies—in high tech, automotive, consumer goods, and many other industries—Profit from the Source provides proven strategies to drive new bottom-line, as well as top-line, growth for your company.

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  1. Print length
    272 pages
  2. Language
    English
  3. Publisher
    Harvard Business Review Press
  4. Publication date
    June 21, 2022
  5. Dimensions
    6.25 x 0.75 x 9.5 inches
  6. ISBN-10
    1647821398
  7. ISBN-13
    978-1647821395
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From the Publisher

Transform your business by putting suppliers at the core. Procurement is a secret weapon.

Editorial Reviews

Review

"…the authors amplify worthwhile insights into an urgent demand for action." — The Wall Street Journal

"In addition to plenty of examples from real companies, the authors offer valuable advice like avoiding "procurement language" when speaking with the C-suite because of the impact it can have on agency and impact and emphasizing "profitable growth" over savings." — Buyers Meeting Point

About the Author

Christian Schuh is senior partner and managing director based in BCG's Vienna office, in Austria. He focuses on global leaders in the Automotive and High-Tech sectors, and he is best known for the book The Purchasing Chessboard and his YouTube channel, Procurement in the Park.

Wolfgang Schnellbächer is partner and managing director based in BCG's Stuttgart office, in Germany. He wrote his PhD thesis on game-theory-based negotiations in procurement, with a focus on auctions. He leads BCG's procurement activities in Europe, and he advises global leaders in the Industrial Goods and Consumer Goods sectors.

Alenka Triplat is partner and managing director based in BCG's Vienna office, in Austria. She advises global leaders in the High-Tech, Defense, and Industrial Goods sectors, and she often works at the intersection between the procurement function and other key functions, such as engineering, product marketing, and manufacturing.

Daniel Weise is partner and managing director based in BCG's Dusseldorf office, in Germany. He leads BCG's procurement activities globally, and he advises global leaders in the Industrial Goods, Energy, and Consumer Goods sectors. His work concentrates on creating maximum value from suppliers and often focuses on postmerger integration, restructuring, and transformation.

You can find the authors at:
Christian Schuh: bcg.com/en-us/about/people/experts/christian-schuh
Wolfgang Schnellbächer: bcg.com/about/people/experts/wolfgang-schnellbacher
Alenka Triplat: linkedin.com/in/alenkatriplat
Daniel Weise: bcg.com/about/people/experts/daniel-weise

Product details

  • Publisher ‏ : ‎ Harvard Business Review Press
  • Publication date ‏ : ‎ June 21, 2022
  • Language ‏ : ‎ English
  • Print length ‏ : ‎ 272 pages
  • ISBN-10 ‏ : ‎ 1647821398
  • ISBN-13 ‏ : ‎ 978-1647821395
  • Item Weight ‏ : ‎ 1.08 pounds
  • Dimensions ‏ : ‎ 6.25 x 0.75 x 9.5 inches
  • Customer Reviews:
    4.3 out of 5 stars 92 ratings

About the authors

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  1. Christian Schuh

    Christian Schuh

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    Full content visible, double tap to read brief content.

    I am a Managing Director and Senior Partner in BCG's Vienna office. I am a member of the Operations Practice specializing in Procurement for technology driven clients. Prior to joining BCG, I worked as a Partner at A.T. Kearney for 23 years. I hold a doctorate in artificial intelligence and a master's degree in mechanical engineering from TU Graz, Austria. My main areas of expertise are Procurement, Engineering, Manufacturing with an emphasis on clients in the automotive, defense and high-tech industry.

    I am best known for the books "The Purchasing Chessboard: 64 Methods to Reduce Costs and Increase Value with Suppliers", "Supplier Relationship Management: How to Maximize Vendor Value and Opportunity" and "The CPO: Transforming Procurement in the Real World".

    See more on the author's page
  2. Daniel Weise

    Daniel Weise

    Brief content visible, double tap to read full content.
    Full content visible, double tap to read brief content.

    Daniel Weise is partner and managing director based in BCG's Dusseldorf office, in Germany. He leads BCG's procurement activities globally, and he advises global leaders in the Industrial Goods, Energy, and Consumer Goods sectors. His work concentrates on creating maximum value from suppliers and often focuses on postmerger integration, restructuring, and transformation.

    See more on the author's page
  3. Alenka Triplat

    Alenka Triplat

    Brief content visible, double tap to read full content.
    Full content visible, double tap to read brief content.

    Alenka Triplat is partner and managing director based in BCG’s Vienna office, in Austria. She advises global leaders in the High-Tech, Defense, and Industrial Goods sectors, and she often works at the intersection between the procurement function and other key functions, such as engineering, product marketing, and manufacturing.

    She co-authored books "The Purchasing Chessboard: 64 Methods to Reduce Costs and Increase Value with Suppliers", "Supplier Relationship Management: How to Maximize Vendor Value and Opportunity".

    See more on the author's page
  4. Wolfgang Schnellbacher

    Wolfgang Schnellbacher

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    Full content visible, double tap to read brief content.

    Dr. Wolfgang Schnellbächer is a European Procurement Topic Leader and is specialized in large-scale transformations, category management, digital procurement solutions, procure-to-pay and operating models of procurement departments.

    See more on the author's page
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  • Mateo Buriticá
    5.0 out of 5 stars Un libro que todo profesional de los negocios debe de leer
    Reviewed in the United States on April 1, 2024
    Format: HardcoverVerified Purchase
    La cadena de suministros se ha visto como un recurso para lograr ahorros cuando se necesitan, pero no se utiliza normalmente para aumentar la rentabilidad del negocio a largo plazo. Esta lectura nos obliga a repensar el rol de nuestros proveedores y como podemos hacer para beneficiarnos mutuamente a largo plazo. Las mejores empresas ven su cadena de valor como aliados y no como competidores y buscan un gana y gana. Este libro nos da un marco de referencia para ello.
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  • Pinkfloyd
    5.0 out of 5 stars A holistic guide to becoming profitable by allying with your suppliers
    Reviewed in the United States on June 28, 2022
    Format: HardcoverVerified Purchase
    The book highlights ten guiding principles for CEOs on why they should make procurement a priority and have a CPO in their board/executive team. Simple insights yet only a minuscule number of CEOs incorporate this. A must read for the C-suite!
    One person found this helpful
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  • Kelly McCarthy Barner
    4.0 out of 5 stars C-level roadmap for procurement concepts & strategies
    Reviewed in the United States on July 13, 2022
    Format: Hardcover
    Having worked in and around procurement for the last (almost) twenty years, I see most news stories through the lens of the supply chain. I think this practice has gotten more pronounced after two years of supply chains in the headlines and above the fold.

    But do Chief Executive Officers think about procurement? Maybe. And if they do, they are definitely not thinking about their suppliers nearly as often as they should.

    Profit from the Source: Transforming Your Business by Putting Suppliers at the Core by Christian Schuh, Dr. Wolfgang Schnellbacher, Alenka Triplat, and Daniel Weise (all members of consulting firm BCG), makes the case for why CEOs need to involve procurement more often and personally engage with strategic suppliers.

    As Dr. Wolfgang Schnellbächer said in a recent interview with Philip Ideson, host of the Art of Procurement podcast, “The typical CEO spends seven minutes a day thinking about procurement or suppliers. We need these CEOs to spend hours in meetings with core suppliers, thinking about how they can best generate value and build a personal relationship.”

    The book is divided into three sections, each of which emphasizes a different kind of change:
    • How You Need to Change
    • How Your Company Needs to Change
    • How Your Company’s Ecosystem Needs to Change

    Each chapter ends with a set of notes for the CEO related to the content in that chapter. Assuming these ideas need to be introduced to the CEO by procurement, this book becomes less a reading assignment for him or her and more a roadmap for the concepts and strategies that procurement should advocate for. These bulleted lists can be used as talking points, contextualized for a specific situation, spend category, or supplier.

    Even given the amount of time I spend thinking about procurement, there were a few real-world examples that made me stop and think. These companies and circumstances raise interesting questions about the role procurement is in currently and whether corporate habits are keeping us away from the spend that would give us the best opportunity to throw off outdated notions about what we can achieve.

    For example:

    Apple – and as of July 12th, Peloton: Because tech companies usually design what they sell but do not produce it, suppliers are even more important to financial stability and operational health. And while dependence on a (complex global) supply chain reduces a CEO’s ability to drive change quickly, it should elevate the importance and influence of procurement. But does it?

    SpaceX: It is hard not to be impressed with what SpaceX has achieved as a supply partner to NASA. We’ve come to expect private companies to out-innovate the public sector. But the way this particular supply relationship was represented in the book, I could not help but wonder if the negative PR (and of course responsibility for the loss of life) associated with the space shuttle Columbia disaster wasn’t behind NASA’s decision to partner with a private company. I suspect that shared responsibility was evaluated alongside capabilities and cost effectiveness.

    And back to Apple: I’m familiar with Apple’s history with different microprocessor companies, but as with the SpaceX/NASA partnership, I don’t think I had considered their relationship with Taiwan Semiconductor Manufacturing Company (TSMC) in quite the same light before. For instance, although the mutterings have quieted down, the world was watching China in the early days of Russia’s invasion of Ukraine. Would they make a move on Taiwan? If they do, Apple is in serious trouble (along with the rest of us).

    In addition to plenty of examples from real companies, the authors offer valuable advice like avoiding “procurement language” when speaking with the C-suite because of the impact it can have on agency and impact, and emphasizing “profitable growth” over savings.
    One person found this helpful
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  • in Chicago
    5.0 out of 5 stars Lessons from a neglected practice - procurement in big tech
    Reviewed in the United States on June 28, 2022
    Format: Hardcover
    There are too many business books in which you need to only read the short article to be done learning what you can learn. This is not one of those. This book is really worth the time because there are things here we don't talk about enough and explain how to do. For example: : the business case for C-suite engagement, what is meant by "collaboration" (it doesn't mean being too soft), and the lessons that can be learned from those winning in consumer tech. Pick it up and give it a read, or better yet, slip it onto the desk of your company's CEO.
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  • Vandana
    5.0 out of 5 stars Procurement can be your company's secret weapon for winning in turbulent times!
    Reviewed in the United States on June 30, 2022
    Format: Hardcover
    Since the world of supply chain is in turmoil , this book has excellent insights on how companies should react during these disruptive times. The cost of the product plays a vital role in determining the bottom line for any company; the author has beautifully explained how to keep prices from spiraling Out of control.
    Great read !!
    One person found this helpful
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  • Amazon Customer
    5.0 out of 5 stars An innovative book about how procurement organizations ...
    Reviewed in the United States on June 28, 2022
    Format: Hardcover
    ... can (and should) continue to evolve to drive a true competitive advantage for companies. The book is timely given current market conditions, potential risk, and opportunity for procurement to re-imagine its role. Highly recommended.
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  • Amazon Customer
    1.0 out of 5 stars Nothing new
    Reviewed in the United States on June 23, 2022
    Format: HardcoverVerified Purchase
    Nothing new or innovative in this book. Very simple and obvious tactics (for anyone who has been on the job for more than a year). Very disappointed, learned nothing . I can sum up the entire book in four words: collaborate with your suppliers. That’s all.
    4 people found this helpful
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Top reviews from other countries

  • Eric P
    1.0 out of 5 stars Book was damaged and dirty
    Reviewed in Canada on February 4, 2023
    Format: HardcoverVerified Purchase
    Book arrived damaged and with greasy fingerprints all over it.
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    Eric P
    1.0 out of 5 stars
    Book was damaged and dirty

    Reviewed in Canada on February 4, 2023
    Book arrived damaged and with greasy fingerprints all over it.
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  • Claudia Chávez Zárate
    5.0 out of 5 stars .
    Reviewed in Mexico on May 9, 2023
    Format: HardcoverVerified Purchase
    Excelente libro
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  • Michele Capasso
    5.0 out of 5 stars Must-buy
    Reviewed in Italy on June 1, 2023
    Format: HardcoverVerified Purchase
    Thorough and well-structured, this book is an indispensable piece for every industry expert
    Report
  • José
    5.0 out of 5 stars Comprehensive guide to unlock value with procurement
    Reviewed in Spain on June 28, 2022
    Format: HardcoverVerified Purchase
    Big fan of the amount of examples and anecdotes supporting the whole narrative. Some surprising data point on how companies with a CPO on their board have outperformed those that didn’t. Finally, I also appreciated the conclusion, key takeaways, strategies and tactics after each of the ten principles.
    Customer image
    José
    5.0 out of 5 stars
    Comprehensive guide to unlock value with procurement

    Reviewed in Spain on June 28, 2022
    Big fan of the amount of examples and anecdotes supporting the whole narrative. Some surprising data point on how companies with a CPO on their board have outperformed those that didn’t. Finally, I also appreciated the conclusion, key takeaways, strategies and tactics after each of the ten principles.
    Images in this review
    Customer imageCustomer image
    Report
  • Sanjay Kumar Nanda
    5.0 out of 5 stars Inspiring book for supply chain professional
    Reviewed in India on January 24, 2024
    Format: KindleVerified Purchase
    It is easy to read and provide great insight on procurement and supply chain.Anyone want to improve his/her knowlege in supply chain specially procurement and want to become better supply chain professional must read this book.
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