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Strategic Sourcing: Explained

Discover what strategic sourcing is and how you can enhance your sourcing process to can gain greater value from your supply chain

Assess your Sourcing process
 
All businesses need supplies - from stationery, to machinery, to services.

Whatever your business needs, the sourcing process and managing your supply chains can be time-consuming. An efficient sourcing strategy is the ultimate goal when running an effective procurement operation.

Strategic sourcing initiatives are effectively aimed at reducing or eliminating offline/unorganised methods, localised decision making and non-repeatable processes.

Read: Extract more savings from your strategic Sourcing initiatives

Strategic sourcing to deliver results

Top-performing organisations exploit the latest technologies to conduct more sourcing events and direct a higher proportion of purchases through formal contracts without the need for doubling overhead, jeopardising quality or increasing exposure to risk.

These organisations combine best-in-class processes with automation to complete the sourcing cycle, inclusive of RFx automation, supplier identification, bidding/negotiation and optimisation tools.
They conduct more sourcing activities with a defined and repeatable methodology in mind, and as a result:
  • Improve supplier co-ordination.
  • Standardise the competitive sourcing process.
  • Make it easier for employees to use existing agreements.
  • Gain a clear picture of what is being bought and from whom.
  • Reduce the amount of labour-intensive manual tasks.
  • And ultimately…reduce costs.

Strategic sourcing challenges

Sourcing and procurement professionals face enormous pressure to deliver, but face a number of challenges when sourcing for projects:
  • It is difficult to collect requirements from end users and organise them.
  • Effectively dealing with numerous categories, complex services, supplier requirements or relying on inflexible technology can take up a lot of your Procurement teams' time.
  • Preparing for and running fair, effective events is critical.
  • Rules that govern the sourcing process are constantly changing and complex.
  • It is difficult to define and track sourcing processes across your supply chain.
This is where using Sourcing solutions and  Strategic Sourcing Services can help your in-house procurement teams.
Companies using electronic sourcing methods have achieved significant annual savings:
There are five proven ways to transform sourcing today if you have the right tools and expertise available:
  • Sourcing events - when defining and managing each sourcing event is easy, with a sequence of one-time and iterative events and well-defined responsibilities.
  • RFx document manager - when the process of capturing what your colleagues need from suppliers is streamlined and straightforward.
  • Auction manager - when an openly competitive opportunity is the best way to source goods or services.
  • Quick quote manager - when you need a fast and simple way to obtain multiple competitive bids for one-time purchases of well-defined goods and services.
  • Extra resources - finding a partner who can provide managed sourcing services can make the difference when it comes to reducing procurement costs, maximising value and maintaining solid supplier relationships.

Extend your team with added capacity, specialist strategic services and proven best practices

With a new sourcing strategy in place, achieving 'best value' from every purchase becomes an everyday reality, and a reliable strategic sourcing services team can provide access to category-specific experts, along with technology and recommendations needed to keep your sourcing and supply chain running smoothly and competitively.

Additional resources, support and expertise will help you streamline your procurement and gain greater value from your supply chain. By partnering with the right managed sourcing partner, you’ll see repeatable and sustainable results much more quickly than with a traditional approach to Sourcing.
Sourcing solutions
Sourcing Streamline and standardise all aspects of your sourcing process to achieve value
Strategic Sourcing Services Gain greater value in more categories, in less time
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