Profit from the Source (with Christian Schuh)

00:00 Introduction
02:26 You mention how CEOs spends less than 1% of their time on procurement, yet more than half of a typical company’s budget goes to procurement. Why has procurement become so seemingly unworthy of a CEO’s attention and what is your proposed change to time allocation?
11:50 You state how the CPO should be given responsibility for a company’s product life cycle. How will that affect his/her behavior?
14:45 What do you think about profitable growth vs. small costs?
28:02 Is playing hard-ball with your suppliers and strictly going for the cheapest suppliers always a bad strategy?
29:48 How does one join forces with their suppliers to have them become part of the product-development system? How much control should your suppliers have?
35:50 You mention how Apple’s phenomenal success is due to them putting suppliers at the core of their business. What role did their technological breakthrough play in their success?
42:19 What is the main benefit of keeping a close relationship with your suppliers at times of unpredictable events, the so-called outliers in supply chain?


Christian SCHUH is a Managing Director and Senior Partner at Boston Consulting Group. With his 27-year career in procurement consulting for the automotive, engineering and defense industries, he believes that the most important factor in the success of a business now and in the future is the close relationship between a company and its suppliers. In his new book, “Profit from the Source”, he also points out the role of the CPO (Chief Procurement Officer), who should have responsibility for the entire product lifecycle and guide the process from the birth of the product idea. In the recent crisis, companies should have learned that partnering with their suppliers is the added guarantee of their life span. Putting suppliers at the core of the business generates cost savings, innovation, quality, sustainability, speed and risk reduction, whereas playing hard-ball does not guarantee a lasting and trustworthy partnership.