In previous installments of this series, we talked about how good design applies not only to a product (or service) or the supply chain that produces it but also the design of the procurement operating model that is the architecture of the supply management services delivered in a procurement organization. In that design, we talked a little bit about reducing trade-offs between the diverse requirements and objectives of the many stakeholders, and the constraints placed on a solution that optimizes everyone’s needs. To do this, we should be fairly precise around the terms requirements, objectives, constraints and optimization. If you might notice, these are terms familiar in the parlance of bid optimization in strategic sourcing. So, let’s explore the learnings from that domain and apply them to designing an optimal procurement organization rather than an optimal sourcing event.
Understanding Objectives, Trade-offs, and Constraints: Design-Centered Procurement (Part 6) [Plus+]
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