Improve Procurement Effectiveness
Strategic sourcing
Maximizing Long-Term Sourcing Value
value focused sourcing
Strategic Sourcing is one of the most misaligned sourcing objectives today due to a focus on immediate cost reductions rather than long-term value creation. Many organizations may prioritize short-term gains, missing the opportunity to build robust supplier relationships.
Overview and Benefits
what is strategic sourcing?
Strategic sourcing is a comprehensive and structured approach to procurement and supply chain management that focuses on optimizing an organization’s sourcing activities to achieve long-term business goals and objectives.
benefits
Strategic sourcing enhances cost efficiency, supplier relationships, and risk management. It ensures quality, fosters innovation, and aligns procurement with organizational goals, resulting in sustainable business success.
The Process
strategic sourcing
in 5 basic steps
The Process
strategic sourcing
5 basic steps
Our Services
what we do
cost management
Implement cost management tools for savings initiatives, workshops, payment terms, business reviews, supply agreements, TCS review process, price increase push-back
supplier rationalization
Perform RFI/RFQ quoting process, NDA, sustainability audit, code of conduct (CoC) questionnaire, financial review (FSA), sourcing board process. (Performance)
market analysis
Conduct market analysis to include commodity price trends, general economic trends, potential supplier pooling, Kraljic matrix, finalize sourcing plan.
category management
Develop category plan for specific crucial products and materials, followed by a category strategy with key sourcing objectives that align with organizational goals.
negotiations
Conduct Total cost to serve (TCS) review, Should Cost model, supplier visit process, sourcing board price comparison (SBPC), quality audit (SQA)
supplier innovation
Drive supplier savings via collaborative workshops with suppliers (i.e. VA/VE, Innovation Workshops on materials and processes), utilize E-Savings tools for reporting.
Quality Process
Implement quality tools such as Quality Audits, Claims Process, DPPM KPIs, COPQ KPIs, SCAR/8D process, and more.
compliance programs
Develop requirements to key suppliers for sustainability audits, SBT initiatives, code of conduct requirements, business ethics, labor/human rights, environmental, and health/safety standards.