Creating value through strategic sourcing
Strategic sourcing can be defined as an institutional sourcing and supplier management process that continuously improves and re-evaluates the supply chain activities of a company. In recent years, the macroeconomic environment has changed - supply bases are becoming more risky due to volatile input prices and increasing frequency of disruptions.
Its principal objectives are to:
- Establish a consistent framework/approach to improving the quality, service and technology of goods and services consumed by an organization
- Develop tools and capabilities that enhance visibility into the goods and services consumed
- Provide a single view across the enterprise of goods and services consumed
- Develop standard agreements/templates
- Create and deploy a framework/policy that addresses ongoing maintenance and monitoring of goods and services procured by the organization (e.g., procurement agreements compliance)