Strategic Sourcing

Strategic sourcing plans provide formalisation to major spend categories to develop and implement key areas of spending within the organisation; unfortunately many organisations do not have them in place. We can introduce or update existing strategic sourcing plans and develop them to streamline the organisation, this can be implemented alongside the business plan so that long term purchasing policies can be determined and give more focus to the business. The status and importance of strategic sourcing is in our eyes is a must as it gives you the knowledge-based ownership of the purchasing requirements of the organisation, under our closely worked procurement management we have based our knowledge like others on Novack and Simco’s 11-stage sourcing process which is widely recognised throughout the business environment, they consist of a series of interrelated tasks as follows:

Stretegic Sourcing Process

Stage 1. Identify or re-evaluate needs
Stage 2. Define or evaluate users’ requirements
Stage 3. Decide to make or buy
Stage 4. Identify type of purchase
Stage 5. Conduct market analysis
Stage 6. Identify possible suppliers
Stage 7. Prescreen possible suppliers
Stage 8. Evaluate the remaining supplier base
Stage 9. Choose supplier
Stage 10. Deliver product/supply service
Stage 11. Post purchase/make performance evaluation