How To Create A Sourcing Strategy And Save 20% of Total Procurement Cost?
Sourcing & procurement leaders are searching for ways to improve their departments and drive greater business impact. It’s becoming more critical as supply chains grow increasingly complex and organizations are more reliant on suppliers than ever before. In such a world, it is the role of sourcing & procurement to unlock new value from the supply base and protect the organization from future disruption.
Supply chain sourcing and procurement leaders must move beyond short-term cost management to leverage supplier capabilities to their maximum advantage in a structured and segmented fashion
Let us understand the positions of procurement in supply chain
Supply chain
It’s an umbrella covering both purchasing and procurement. But that’s not all - it also covers the logistics and supplier quality. It’s expected to drive the savings plan and deal with risk mitigation.
Procurement
It’s responsible for finding new suppliers, running various sourcing activities and negotiating terms and conditions. They take part in new saving initiatives and drive.
Some organizations have adopted these sourcing strategies
To proactively understand what drives the requirements of the business as opposed to simply facilitating the buying process.
Driving suppliers to innovate through supplier innovation efforts, demonstrating the value of this supply chain sourcing strategy, etc.
Protecting the business from risk by formulating a formal and broadly-applied strategy for assessing risk. These assessments have nearly 25 percent greater procurement ROI than those without them
How Paragon results can help?
We work with our clients to help reduce their cost base, strengthen their supplier base, and create a world-class procurement plan
Our procurement practitioners bring extensive industry, category and operational experience, which has been garnered from around the globe
We have a broad set of approaches that can be tailored to your specific sourcing needs.
Our procurement methodologies are underpinned by extensive training of your team, ensuring benefits are sustained long term
A combination of formal training on-the-job coaching that drives improved performance and ensures current and future sourcing savings are fully delivered and sustained.
We use major strategic sourcing with a focus on – business awareness, existing supply chain management, supplier relations and cost structure and competitive marketing analysis
Creating a sourcing strategy typically saves about 20% of total procurement cost while mitigating supply risks. Contact us to know more.
