The sourcing stage is all about being strategic in how you plan for and procure the goods and services you commonly buy. It enables you to organize and better understand your procurement requirements across your organization, and develop a strategic, cost effective and coordinated approach to how you are going to procure them. When sourcing is done strategically, it results in better pricing, lower vendor risk and more efficient procurement operations.
The strategic sourcing process begins by bringing together disparate, decentralized data so that it can be collected, cleansed and standardized. This allows an organization to have a comprehensive view into what they are buying and how much they are paying, and begin the process of pinpointing opportunities for more strategic and cost-effective sourcing.
Our team of procurement specialists can manage this process for you. We’ll identify the right data, collect it from paper-based documents and electronic databases like accounting and purchasing systems, and normalize it so you can have a clear picture of your organization-wide spend and where opportunities lie for improved sourcing.
DEFINING SOURCING REQUIREMENTS
Collecting spend information is only one part of the process, though. A good strategic sourcing process requires you to supplement quantitative data with additional information you gather by collecting feedback from buyers. This ensures you have a complete picture not only of what you buy and how much you pay, but also understand qualitative requirements such as technical specifications, service levels and subject matter expertise. It also allows you to identify new sourcing needs, or anticipated changes to past buying patterns.
We can support the developing of your sourcing requirements by facilitating conversations with your stakeholders to understand both past and future requirements, and then aligning their feedback with the quantitative spend data to create a complete set of sourcing requirements for each category being evaluated.
Strategic Sourcing Best Practices
Check out some of the strategic sourcing posts from our vendor management blog.
EVALUATING SOURCING OPTIONS
Once a clear set of sourcing requirements have been developed for a given expense category, you’re ready to research the marketplace and identifying options. Assuming it makes sense to buy versus build, options might include consolidating spend with a single vendor, leveraging group purchasing contracts, outsourcing key functions or entering into shared service agreements.
Vendor Centric can you evaluate options by conducting market research and presenting you with viable sourcing options. We’ll uncover what your peers are doing, identify sourcing best practices, and present you with fully vetted options for you to consider.
ESTABLISHING A SOURCING IMPLEMENTATION PLAN
The last step is to select the right sourcing strategy, and to develop an implementation plan based on what you selected. Implementing a new sourcing strategy can be simple or complex depending on a variety of factors, so it’s important to right-size a plan that allows for an effective transition of responsibilities by both internal stakeholders and vendors.
Our specialists can help you create an effective and efficient implementation plan, and can also support you in affecting the transition to your new sourcing strategy.