Strategic Sourcing Management includes Opportunity Value Analysis, Category Market Research; Procurement Education and Training; Category Management Staff Augmentation; and Procurement Transformation.
Strategic Sourcing Management is a structured approach to the procurement of goods and services which seeks to radically improve the benefits for the organization by applying best practice tools and techniques in the development and implementation of an integrated sourcing business strategy.
Our Strategic Sourcing Management Program includes the phases of the process are:
- Phase 1 – Project Kick-off Cross-functional teams are formed, governance agreed and stakeholders engaged. The team is introduced to and educated in the use of appropriate tools and processes.
- Phase 2 – Current Situation Analysis and Definition To include defining categories, collecting and analyzing spend data and validating the opportunities found. We also identify Quick Win opportunities, which we focus on to deliver immediate savings and start to deliver early benefits from the process.
- Phase 3 – Strategy Creation With the information gathered in the previous stage the procurement strategy is created. This is a crucially important step in the process as it will form the basis for the savings generation work as well as providing the first step on the ladder to self sustainability.
- Phase 4 – Strategy Implementation A very detailed implementation plan is developed to deploy the agreed strategy. Program management is a critical factor in this phase, to ensure work is completed on time and deliverables are realized. Advanced saving tracking processes are employed to ensure that the benefits are real and achieved.
- Phase 5 – Supply Development and Continuous Improvement Emphasis shifts from “cost down” through “cost out” to “value up”. Some of the service offerings employed in this stage include Supplier Management, Supply Management and Specification Management; all take the process to the next level, which over time will lead to breakthrough strategies building upon earlier savings.
Sustainable procurement is the ultimate goal and to achieve this, the process continues. By following the Sourcing Management Process, savings are immediately apparent in the form of lower invoiced prices from suppliers and can be tracked all the way to the bottom line delivering a fast, high ROI.
Allied’s associates have worked with businesses across many sectors and countries to introduce and implement the Sourcing Management process using cross-functional teams and engaging stakeholders to ensure savings flow through to the bottom line. If you would like to learn more about the work we have done in this area some typical case studies provided.
Benefits derived through the use of sourcing management analytical tools and techniques:
- Breakthrough savings, typically 15-30% delivery
- Significant improvement in company profitability
- Robust process using structured tools and techniques
- Cross business approach
- Raises profile and competency of procurement across the business
- Very effective use of resources – high payback ratio
- Stakeholder buy into results
- Delivers world class procurement solutions
- Use of best of breed eProcurement tools ensures faster delivery of savings