As Supply Excellence readers in the U.S. attempt to shake off your turkey-induced tryptophan comas, I thought you’d enjoy chewing on the final installment of our three-part interview series with leading supply management executives. (You can also catch up on part one with Coors Brewing Company and part two with Alltel.)

This final installment puts the spolight on Kees Gerretse, CPO at Corus Plc, the global steel and aluminum products and service provider. The interview comes compliments of eyeforprocurement, which is hosting the Supplier Management Forum in Miami April 17 - 18, 2007. Check out the full conference agenda and registration information here. (Register before year end and knock $400 off the registration price. Mention “Supply Excellence” in the discount code area of the registration form and save another $100.)

While reserved, Gerretse shares insights into Corus’ relationship management approaches with key suppliers and its evolving China sourcing strategy.

Question: A recent Capgemini survey of global chief procurement officers found the most significant business driver for 2007 is compliance to contracts and improved visibility of spend with suppliers. Are these also your priorities and if yes why are they important to you? What priorities do you have for 2007?

Answer: We focused already on this in our restoring success program. Proper supplier relationship management and end user engagement are my topics.

Question: What strategic direction are you gearing toward in order to better your position for long-term security and continuity of your supplies?

Answer: SRM with key suppliers. Change of mindset in procurement staff.

Question: Good relationships come out of good performance. What metrics do you use in regard with your suppliers and how do you measure their performance. Delivery, quality, cost – what message do you give to your suppliers and what do you expect from them?

Answer: We have a rating system with also non financial criteria. Not all sites are using that and we are rolling this out.

Question: Low-cost country sourcing seems to be vital to maintaining competitiveness, but execution pitfalls remain. Are you sourcing in low-cost countries and if yes, how did you organize your low-cost country supplier management? What obstacles did you have to overcome?

Answer: This is a major program in Corus today. We have now a global sourcing office in China, and Eastern Europe. Also a dedicated team to support the categories to identify opportunities. We are spending now more than $300 million annually in China with benefits of more then $25 million.

Question: Collaborative Sourcing is the next stage of the advanced supplier management . How much value do you currently create because of the way you work with your suppliers?

Answer: I am open for that. We did not explore or done a lot in that area .But it might be interesting.

Corus is not alone in its aggressive China sourcing approaches and concerns. As a global manufacturer in a highly competitive sector that is tied to the volatile commodities market, China is almost a prerequisite for a cost-competitive supply chain.

That’s not to say China is the panacea. The fast-growing region introduces new logistical and supplier management challenges that are foreign to many companies — even those familiar with offshore sourcing. And a rising working class and global pressures for China to adopt environmental and socially responsible manufacturing strategies could dampen some of the cost benefits of China.

Supply Excellence questioned the irrational exuberance surrounding China sourcing in a post earlier this month. Supply Excellence questioned the aggressive China strategy of one specialty manufacturer.