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is a formal approach to procurement that allows an organization to leverage its purchasing power to achieve the best value for its spend
creates efficiencies across all spend categories while minimizing supplier risk
involves analyzing the spend profile of an organization and the supply market
ensures the effectiveness of an organization's procurement processes and provides visibility into the supplier base and its pricing, thereby executing procurement plans based on the lowest cost of ownership (TCO)
Companies that have implemented strategic sourcing successfully have established the most competitive contracts, sped up their sourcing processes, selected qualified suppliers, and minimized risk.
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Increased cost savings with direct impact on the bottom line
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Established a stable, reliable, and continuous source of supply
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Increased cost savings with direct impact on the bottom line
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Achieved a close alignment between sourcing and business goals
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Minimized supplier risk and ensured compliance
There are seven steps in the process to effectively implement strategic sourcing:
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Identify and categorize spend
Create a profile defining the sourcing category or commodity2
Assemble a work team
Collaborate using a cross-functional team to define strategy3
Build the sourcing strategy
Decide on how and where to buy by analyzing the supply market while minimizing risk and costs4
Identify and pre-qualify potential suppliers
Request supplier information, solicit bids, and identify selection criteria5
Select supplier(s), negotiate, and execute the contract
Shortlist suppliers and make the final selection based on the pre-defined evaluation criteria6
Implement the contract and integrate suppliers
Extensive communication and change management are vital steps to ensure a smooth implementation7
Continuous measurement, monitoring, and tracking of supplier performance
Includes tracking of savings and where the supplier is adding value using a Supplier Relationship Management (SRM) processManaging sourcing projects with spreadsheets is slow, error-prone and has reduced visibility for stakeholders. Strategic sourcing software solutions can increase efficiency, minimize supply risks, and achieve the required cost savings. Harness the power of automation to optimize your strategic sourcing projects.
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Ease of use
The best solutions are those which are comprehensive but both easy to use and easy to learn with a simple interface. ProcurePort provides live support and troubleshooting service to ensure a smooth and successful implementation. Our strategic sourcing software makes procurement events easier and speedier to manage.2
Seamless connectivity
Software applications must connect easily with existing enterprise tools and other systems to be successful. Online platform solutions now not only provide spend analysis tools and manage the sourcing activities but include contract negotiation support and on-going supplier management, traditionally areas where human intervention is most required.Our strategic sourcing software offers a wide range of features such as spend analysis, requests for proposals and quotes, reverse e-auctions, workflow management, supplier information management and contracting. Using our automation tools, you can manage your entire sourcing and contracting processes for both direct and indirect spend including services, all in one place.
Spend analysis can aggregate and classify all purchase history, segment spend and identify savings opportunities
Sourcing and contracting processes across teams and business units are standardized
Negotiated savings are fully realized across all spend categories
Productivity and sourcing efficiency are increased
Risk is reduced by contracting with the best suppliers
Our cloud-based web application and portals connect buyers with suppliers through a variety of strategic sourcing tools which leverage real-time technology. Strategic sourcing processes have never been easier. Contact us today to schedule a demo and discuss your requirements with our sourcing consultants.