Revolutionary Concept in Strategic Sourcing Revealed

Washington, D.C. – November 19, 2007– In the first everbook on the subject, author Stephen Guth has revealed the emerging organizational concept of the Vendor Management Office, which turns traditional purchasing concepts on their head.

While buyers have traditionally focused on price, Mr. Guth has turned things upside down by claiming that price does not matter. Mr. Guth says: “There’s an old adage that you get what you pay for. People in the purchasing profession have focused too much on price, walking over dollars to pick up pennies. My philosophy, and that of the Vendor Management Office concept, is to get what you pay for.”

In his book “The Vendor Management Office: Unleashing the Power of Strategic Sourcing,” Mr. Guth points out that negotiating the lowest possible price is no longer enough. Internal customers demand more—they need business advice, guidance, and expertise to manage their sourcing requirements. The organizational key to unleashing the potential of strategic sourcing is the Vendor Management Office, an over-arching organizational concept of strategically managing procurements and vendors to maximize business investments in key commodities.

Resulting from over 10 years of Mr. Guth’s real-life experience implementing Vendor Management Offices or “VMOs” at well known companies, the book introduces the concept of a VMO, describes how to sell the VMO concept to stakeholders, and offers practical tools necessary to successfully launch a VMO.

More information about “The Vendor Management Office: Unleashing the Power of Strategic Sourcing” and other publications by Mr. Guth can be found at www.vendormanagementoffice.com.

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Stephen R. Guth, Esq. is the Executive Director of the Vendor Management Office at the National Rural Electric Cooperative Association (NRECA) located in Arlington, Virginia. He has provided negotiation services, as both a customer and a vendor, to numerous multi-national companies. Mr. Guth is a graduate of the University of Miami School of Law, received a Master’s from George Washington University’s Commercial Contract Management Program, and is a summa cum laude graduate of Saint Leo University. He holds the following certifications: Certified Purchasing Manager, Certified Technology Procurement Executive, Certified Commercial Contract Manager, and Fellow of the Life Management Institute. Mr. Guth’s book can be found at www.lulu.com/content/1346743.

NRECA is a national trade association representing the interests of more than 900 consumer-owned cooperative electric utilities located in 47 states. NRECA provides legislative, legal and regulatory services through the dues-supported revenues as well as fee-based services associated with group insurance, pension, employee benefits/compensation, savings/investments, strategic analysis, market research, training and certification, energy consulting, market development, public relations and advertising. NRECA and its member cooperatives also support electric utility-specific and environmental research and administer a program of technical advice and assistance with the electrification of developing countries around the world.

For more information about NRECA, please visit the company's Web site at http://www.nreca.coop.