strategic sourcing

Improve Strategic Sourcing Discipline

Half of Strategic Sourcing Isn't Disciplined

Procurement has been applying the seven-step strategic sourcing process for over 20 years, and doing so has led to billions in savings. Yet, when surveyed, procurement professionals tell us that only 51% of buys meet Procurement’s desired level of discipline. 

The way Procurement views its role in strategic sourcing may actually be outdated – it can cause tension with internal stakeholders and limit the cost savings that strategic sourcing can add.

Procurement Seeks Earlier Involvement

Strategic Sourcing

To improve strategic sourcing discipline, procurement organizations typically attempt to get involved in the earlier planning stages of a buy, but only 21% of business partners actually want Procurement’s help early.

Early involvement may not be necessary or practical because it does not increase strategic sourcing discipline, lead to better savings, or improve cycle time results for the business. As it turns out, 26% of business partners source effectively on their own and another 53% could improve if Procurement gives them the right support.

Shift Strategic Sourcing Discipline to the Business

Procurement must shift its mind-set from strategic sourcing discipline being applied by Procurement to strategic sourcing discipline being applied to the business. While only one-third of business partners who involve Procurement late have high strategic sourcing discipline, a relatively large group of business partners could achieve high discipline if it had meaningful support from Procurement.
 

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