TAKE PURCHASING POWER TO THE NEXT LEVEL
| What is Strategic Sourcing? | Strategic Sourcing is the process of bringing the sourcing function in line with company strategy in a way that streamlines the purchasing process, creates lasting partnerships with important suppliers, and delivers lower Total Cost of Ownership. The process views suppliers as long-term partners, instead of short-term, one-off independent purchase entities, and thus works to maximize to ensure mutual long-term success. |
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Analyzing Spend Data This explores what is being spend, in proportions, with which suppliers, in which time frames. It allows the categorization of suppliers in ways that help determine strategic importance and impact on overall purchasing costs. |
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Forecasting Demand This critical step creates the framework for determining what supplies will be needed to meet demand levels. Forecasting models and methods vary, so finding one that fits your business and markets is essential to achieving reliable results. We recommend using statistical modeling to improve the level of confidence of forecasts. |
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Analyzing Supplier Market Suppliers are analyzed relative to their competitors in order to evaluate their capabilities in terms of meeting forecasted demand and meeting other delivery requirements. They are also assessed in terms of their growth potential, ability to respond to market changes or customer requests. Suppliers are prioritized based on best fit with your organization. |
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Identify Supplier Partners From the prioritized list, a select group of suppliers is targeted for development of mutually beneficial business relationships. These companies are carefully chosen based on their strategic fit and overall offerings. Partners should be selected using standardized criteria in order to ensure consistency across the supplier base. |
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Developing Enduring Relationships Once potential partners are identified, the process of engaging the chosen suppliers to create enduring long-term relationships begins. The objective is to work jointly on meeting aligned corporate objectives while effectively serving market demand in ways that lead to long-term growth and prosperity for all involved. |