lence Framework has helped us mitigate some supply chain risks mainly driven by trade actions on steel and aluminum . This in large power transformers has made US Transformer manufacturers non-competitive due to imports coming from other regions ,” Arora notes .
The sourcing framework was put in place to ensure our supply chain is smooth and effective , as it enables us to manage our top suppliers using 80 / 20 rule . The 80 / 20 rule focuses on 80 % of our overall direct spend which is managed by 20 % of suppliers . By having long-term dual sourcing contracts and
vendor consolidation we get better reliability and repeatability . Arora says : “ The sourcing excellence framework , as it is based on Total Cost of Ownership ( TCO ), also addresses vendor consolidation and in-sourcing , thereby leveraging synergies across other SPX Corporation businesses . It has also helped the procurement function to be “ Future Proof ” through “ Balanced Enforcement and Enablement ”.
In SPX Transformer Solutions , the latest transformation is the digitization of its procurement operations . “ With supplier spend data analytics , we ’ re aiming to further improve supplier
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