Strategic Sourcing

There is so much popularity around strategic sourcing in the last few years that, it has even made it into the titles of the procurement roles and created an outburst in the technology space! In essence, strategic sourcing simply means taking strategic a view while sourcing for goods or services. It’s the best tool procurement professional have ever got in their arsenal not only to win the game of Cost and Quality, but be the champion of Total Cost of Ownership and Risk Management.

World-Class Strategic Sourcing consultants like Accenture, AT Kearney, PwC have introduced Strategic Sourcing processes that any procurement organizations can use and apply. While the Strategic Sourcing processes range from 6 – 8 steps, the overall theme generally is the same. Strategic Sourcing offers many key benefits like cost reduction, risk management, but the more softer, yet powerful aspect of Strategic Sourcing are often overlooked. Some of them are

  • Provides a process to follow – For someone new to procurement to a experienced professional, strategic sourcing processes is beneficial equally. With the structured process, the sourcing managers not only know what to do next, but also guides through a structured thinking process.
  • Helps the sourcing manager ask the right questions – The process is designed in such a way that each step uncover some form of information that helps the sourcing managers ask the right questions. The process generally uncovers details around, market, supplier, quality, cost etc. which leads a well informed decision.
  • Being Proactive – Following strategic sourcing process means, understanding the requirement in detail and optimizing the same, gathering relevant data necessary to take the right decision and executing a favorable contract for the organization – all of which combined deserves a reasonable time and cannot be hurried. This will make the sourcing process proactive than reactive. The procurement team will engage with stakeholder far before the actual requirement.
  • Culture of strategic thinking – Best of all, Strategic sourcing creates a culture that is beyond cost and quality. It will influence the procurement thinking in a way that all purchases are strategically viewed and evaluated. This culture is has significant impact in how an organization operates and procurement will be the key enabler.

If you or your organization has not be using this strategic sourcing process, out of Accenture, AT Kearney or PwC, pick the one that works for you and try sourcing your next few projects following that process. You will see the result for yourself.  At Simfoni we built Sourceforce to make this easy for you. Sourceforce is a sourcing project, savings and knowledge management tool which is built to support any Strategic sourcing process. With Sourceforce you can build your custom sourcing process, manage and record savings and best of all, build a Sourcing knowledge repository that you always wished for.

Try Sourceforce today, and bring your strategic sourcing process to life.

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