What is strategic sourcing & how can it deliver greater savings?

Discover what strategic sourcing is and how you can enhance your sourcing process to can gain greater value from your supply chain
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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/unorganized methods, localized decision making and non-repeatable processes.

Read: Extract more savings from your strategic Sourcing initiatives

Strategic sourcing to deliver results

Top-performing organizations 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, jeopardizing quality or increasing exposure to risk.

These organizations combine best-in-class processes with automation to complete the sourcing cycle, inclusive of RFx automation, supplier identification, bidding/negotiation and optimization tools.
They conduct more sourcing activities with a defined and repeatable methodology in mind, and as a result:
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Improve supplier co-ordination.

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Gain a clear picture of what is being bought and from whom.

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Reduce the amount of labor-intensive manual tasks, and costs.

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Standardize the competitive sourcing process.
A practical first step to assessing your Source-to-Contract process:
As a Procurement leader in your organization, have you been thinking your sourcing, supplier management and contract management processes could stand to be improved? Or maybe that they desperately need to be improved?

Do you sense that those processes may be wasting precious resources (time, money, talent etc.) because they are not as effective or efficient as they should be?

If it is time to rethink your Source-to-Contract (S2C) process, our Assessment Tool can help you do that in a structured manner.
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A practical first step to assessing your Source-to-Contract process

Strategic sourcing challenges

Sourcing and procurement professionals face enormous pressure to deliver, but face a number of challenges to effectively source for projects:
  • It is difficult to collect requirements from end users and organize 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 can help your in-house procurement teams.

With a new sourcing strategy in place, achieving 'best value' from every purchase becomes an everyday reality.

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.
Our experts will guide you through our solution and answer all of your questions.