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Procurement a part of Nortel turnaround plan
Purchasing b2b staff
Procurement a part of Nortel turnaround plan
Toronto—Nortel provided more details in July on its plans to turn around the company. Among its strategies are changes to its pension programs, and a net reduction of 1,100 global jobs.
Management is also aiming to "flatten" the organization and make it more agile and accountable.
For procurement, the strategy is three-fold:
• Supplier life-cycle management. Nortel procurement managers will map supplier capabilities, including agility, volume and capacity through the different stages in a product's life cycle.
• Smart, simple design or parts standardization.
• Clean sheet analysis. This is a data-intensive best practice that enables Nortel to identify what a product or component "should" cost, and then use that data in supplier negotiations.
Nortel will also open two new operations facilities—one in Mexico and the other in Turkey. In the process, the company will shed 1,200 jobs globally. The long-term plan involves consolidating more than 100 of Nortel's global sites into fewer operations.
The company cited the strong labour pool, cost competitivness and proximity to major customers as its reasons for selecting Mexico and Turkey for operations.
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