Steps to Strategic Sourcing
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- Jerome Ashley Hawkins
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1 12 Steps to Strategic Sourcing
2 1 Analyze Spend & Gain Visibility Classify spend across multiple parameters and dimensions including supplier, category and business units Make visibility across the procurement process a priority not just spending 360 visibility supports a full range of strategic procurement activities
3 2 Analyze Opportunities Visibility enables sourcing professionals to analyze the nature, scale and complexity of categories Sourcing professionals can now determine if a strategic sourcing approach can deliver additional value over alternative approaches which in turn can generate savings
4 3 Analyze Market Develop an in-depth knowledge of the your ecosystem suppliers, supply markets, the changes in the commodity prices, supply chain structure and economics.
5 4 Manage Categories Collect, collate and analyse supplier & buyer reporting data Gather category intelligence through external research reports, internal research and trend mapping on indices)
6 5 Standardize Sourcing Rationalize product specifications & standardize buying practices. Set up selection & qualification criteria for suppliers by developing benchmarks created by taking inputs from the various stakeholders involved in the usage of the product/service being procured. Based on the spend analysis & qualification criteria set for suppliers produce a new list of qualified suppliers
7 6 Encourage Supplier Innovation Be flexible while seeking information from suppliers as well as inviting supplier bids Rigid contracting terms will inhibit suppliers from offering their best and inhibit mutually beneficial supplier relationships
8 7 Optimize Supplier Bids Create & compare award scenarios to suite your business requirements Lowest bid is not necessarily the best bid Analyze the bid from various business constraints based on material cost / transportation cost / labor cost etc
9 8 Manage Supplier Relationships Create supplier management, enablement and development programs to Improve supplier performance and develop mutually beneficial relationships.
10 9 Manage Contracts Monitor and ensure that buyers & suppliers comply with the performance requirements of the contract. Negotiate not only on price but also on various other criteria like payment terms, on-time delivery, volume etc.
11 10 Share Information Share information on best practices for a market, category, supplier profiles among both internal and external stakeholders
12 11 Collaborate Work closely with internal & external stakeholders Capture knowledge and information effectively & efficiently from many sources (internal & external stakeholders), transform & redistribute it where needed
13 12 Track Sourcing Benefits Create & manage sourcing projects on a single platform. Monitor project progress and identify bottlenecks & replicate sourcing best practices across the organization.
14 About Zycus Z At Zycus we are 100% dedicated to positioning procurement at the heart of business performance. For more than a decade we have been the world's most trusted leader in Spend Analysis. With our spirit of innovation and a passion to help procurement create even greater business advantages, we have evolved our portfolio to a full suite of Procurement Performance Solutions Spend Analysis, e-sourcing, Contract Management, Supplier Management, and Financial Savings Management. Behind every Zycus solution stands an organization that possesses deep, detailed procurement expertise and a sharp focus on being responsive to customers. We are a large 600+ and growing company with a physical presence in virtually every major region of the globe. We see each customer as a partner in innovation and no client is too small to deserve our attention. With more than 200 solution deployments among Global 1000 clients, we search the world continually for procurement practices proven to drive competitive business performance. We incorporate these practices into easy-to-use solutions that give procurement teams the power to get moving quickly from any point of departure and to continue innovating and pushing business and procurement performance to new heights. NORTH AMERICA EUROPE Princeton: 103, Carnegie Center Suite 117, Princeton, NJ Ph: Chicago: 5600 N.River Road; Suite 800, Rosemont, 1L Ph: Atlanta: 555 North Point Center East; 4th Floor, Alpharetta, GA Ph: Frankfurt: EPJ Business Center, Suite # 418, Mainzer Landstrasse, Frankfurt am Main, Germany. Ph : +49 (0) , +49 (0) , +49 (0) Paris: 20, Bis rue Louis Philippe, Neuilly sur Seine. Ph :+33 (1) London: Office 404, 4th floor, Albany House, 324/326 Regent Street, London, W1B3HH. Ph : +44 (0) ASIA Mumbai: Plot No. GJ 07, Seepz++, Seepz SEZ, Andheri (East), Mumbai, Maharashtra Ph:
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