General Electric is well known to be at the cutting edge when it comes to procurement. In this article, GE Capital has summarized some interesting lessons on best practices in sourcing and procurement, lessons we can all learn from and apply not only as organizations but also as those executing critical procurements on a daily basis.
What are key takeaways?
While this article isn’t a step by step review of the sourcing process, GE Capital has summarized what we believe to be the critical “connective tissue” between the professionals leading and executing sourcing/procurement/acquisition efforts and their organizational environment. It also addresses the connection with the supplier community more broadly.
As GE Capital describes in the introduction:
“At GE, we have six key sourcing best practices that are effectively layered over the top of our many and diversified sourcing [procurement] activities, to great effect. These are:
- Early involvement from sourcing [procurement] professionals.
- Widespread, systematic information sharing.
- Internal partnering with the right people.
- Balanced supplier relationships.
- Systematic supplier risk management.
- Alignment with corporate [mission]goals.”
These are many of the same themes we are challenged with in the public sector as well, to get right as we lead and execute sourcing and procurement efforts.
Case Study: GE Capital