Browsing: Strategic Sourcing

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Last week we started exploring “Selling the Change” and approaching it from a sales perspective. We all recognize that change is hard. As professionals in a Shared Services environment (Procurement, Supply Chain, Strategic Sourcing) one of our primary roles is that of a change agent as we are trying to play a more strategic role within our organization. Getting suppliers to work with us under a more strategic context is the easy part.

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Who remembers the summer of 2011 when Netflix, Inc. raised its prices by 60% (“Netflix raises price of DVD and Online Movies Package by 60%” NY times 7.12.11) and lost almost one million customers? Fast forward to October 22, 2013 where Netflix reported adding 1.3 million U.S. customers just in the third quarter ( “Subscribers Fuel Netflix Stock” – WSJ) to eke out HBO by one million subscribers. In addition, its stock price is up 282% since the beginning of the year. How did they do it?

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As we are working “in the weeds”, every day, we often lose sight of how critical our function is. We, at The Mpower Group, do a lot of Strategic Sourcing and Supply Chain Management training as one of our service offerings because WE KNOW the value of a strong Supply Chain. I guess it has just taken the rest of the world a little time to catch up . . . . . .

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