Strategy and objectives

The pace of technological change and intensified competition over the last decades have made business transformation imperative. Within Philips, we have made a paradigm shift from Purchasing to Supply Management.

This transformation is about changing mindsets, as much as changing structures. We are looking beyond the traditional boundaries of our divisions to involve supply management in the complete value chain. This is supported by the implementation of programs and tools, aligned and standardized on a company-wide basis.

Involving our suppliers at an early stage in product

development is key to our ability to innovate and meet our

customers’ expectations. By ‘designing in’ standard solutions,

we can maximize opportunities to capture value and reduce the

 overall total lifetime costs of our products.

In this new environment, we need suppliers who can work

closely with us to achieve our goals. So we are reviewing our

supply base and intensifying our relationships with our strategic

suppliers.