Manage the critical goods and services required to deliver your strategic change initatives. Provide the best value for money from your sourcing arrangements. Evaluate and selection of suppliers based on their ability to provide the quality, at the right level of risks, for the best 'full-life-cycle cost'.

Our Approach to Implementing Strategic Sourcing

Each situation requires a tailored approach, but our Strategic Sourcing process outlined here follows a standard approach, that we would look to refine as part of the delivery. The key structures of a strategic approach to sourcing.

1. Develop a comprehensive sourcing strategy: Including developing Vision, Principles, objectives, criteria, timeline, and a budget for the procurement process(es).
2. Identify potential suppliers: Research existing marketplace, suppliers, search databases, and develop contacts to find potential suppliers who can meet requirements.
3. Evaluate potential suppliers: Establish a selection process and balanced scorecard to assesses each service on agreed criteria (quality, cost, delivery, agility etc).
4. Negotiate terms with suppliers: Negotiate terms that are fair and beneficial to both parties, such as pricing structure, payment terms, warranties and guarantees. Identifying agreed KPIs; and where partnering/joint outcomes can be developed together.
5. Establish supplier relationships: Establish and develop long-term relationships with suppliers to develop value for the organisation.
6. Monitor Service performance: Regularly review service/supplier performance against agreed KPIs, and ensure that they maintain quality standards and meet delivery dates.
7. Communicate expectations and needs: Keep open lines of communication with suppliers to ensure that both parties are meeting expectations and needs. Create Governance, Escalation and Resolution processes.
8. Service Improvement: Establish a feedback mechanism that allows you to collect and review supplier feedback.
9. Full Service Life-cycle. Manage the entire service life-cycle, from sourcing to selection to contracting and beyond, to ensure that the organisation is getting the best value for its money, managing risks and maintaining the best outcomes.

Key Features and Benefits of our Strategic Sourcing Services.

Features

• Delivery of value for money, appropriate quality services, Governance
• Drive Innovation and Change throughout the delivery Life cycle
• Commission, measure and manage work based on Outcomes
• Driving service delivery through balanced scorecards and standard KPI’s
• Category Management: analysis spend data, cost savings , develop sourcing strategy.
• Supplier Relationship Management, building managing relationships
• Negotiation and Contracting: Executing contracts to achieve the best terms/conditions.
• Price Bench-marking: researching market trends, identify opportunities,cost savings.
• Market Intelligence: current market conditions/trends, new sources of supply,
• Risk Management: evaluating supplier risk, mitigation , ensure continuity of supply.

Benefits

• Enable friction less, responsive supplier/business contracts
• Encourage/drive Partnering Behaviours with suppliers and partners
• Support change in the sourcing approach as the business needs or external environment changes
• Improving the overall effectiveness/competitiveness of a business
• Reducing costs, improving quality, and increasing efficiency.
• Reducing their supply chain risk,
• Improving their ability to respond quickly to changing market conditions.
• Provide access to new technologies or services
• Enable advantage in delivery.
• inform sourcing decisions, cost savings, compliance with contractual agreements.

Key Roles required to Successfully Delivery Strategic Sourcing.

In order to delivery your Strategic Sourcing capability, the following roles with the associated skills are typically required to make it successful. Our services can help augment your teams, and help direct the development of your Strategic Sourcing capability.

1. Sourcing Manager: Responsible for the overall strategy of a company’s procurement activities.
2. Procurement Analyst: Collects and analyzes data on potential suppliers, evaluates bids, and makes recommendations to the sourcing manager.
3. Supplier Relationship Manager: Develops relationships with existing suppliers and negotiates contracts with new ones.
4. Contract Manager: Ensures that contract terms are met by both parties and manages any disputes that arise.
5. Category Manager: Analyses spend data to identify areas of improvement in terms of cost savings and efficiency.
6. Cost Engineer: Analyses cost data to determine where savings can be made in the supply chain process.

Why You Should Take a Strategic Approach to Supplier Sourcing

Taking a strategic approach to supplier sourcing is essential for any successful organisation or programme delivery. By carefully assessing potential suppliers and understanding their capabilities and potential risks associated with them, organisations can ensure they select the best possible sources for their needs. Having a clear plan for how these suppliers will be managed is essential for ensuring long-term success with strategic sourcing initiatives. By taking a strategic approach to supplier sourcing, organisations can reap all of the benefits associated with this important process while minimising any associated risks.

Strategic Sourcing offers many advantages to organisations that choose to pursue it. The risks associated with this process that must be managed in order to ensure success, but by taking a strategic approach to supplier sourcing, organisations can maximise their value for money while minimising any potential losses due to supplier failure.