Strategic Sourcing
What’s the impact of strategic sourcing?
WHY STRATEGIC SOURCING?
Cost Savings Impact on your Bottom Line
A 10% cost reduction can have a much greater profitability increase than a 50% growth in revenues. Indeed, you can have more controls on your costs than on the market to increase your sales. These savings are shown in your P&L. Actual cost reduction and thus strategic sourcing delivers real value.
Sourcing of New Products to be Fast to Market
Innovation and fast new production introductions go hand in hand. The sourcing role goes beyond accomplishing cost reduction. It extends to identifying new opportunities and capitalize on them. This helps to generate new sources of income for your business.
Sustainable Cost Reduction with Impact that Lasts
The cost savings achieved through Strategic Sourcing have a lasting impact on your bottom line. This is real cost reduction with a profound positive impact.
HOW?
- Spend Analysis: Through data analysis powered by automation, statistics, and six sigma tools, spend analysis allows for identification of opportunities with impact on the bottom line.
- Category Strategy: a powerful approach that can be summarized as the CRM of Sourcing. We perform a thorough analysis of each category to maximize cost reduction and value creation.
- Supplier Identification and Assessment: Suppliers play a pivotal role. Identification of different potential sources and supplier’s capability evaluation based on clearly defined and agreed criteria are the basis for success.
Innovative Approach to Go to Market: We follow a step-by-step model to obtain the lowest total cost of ownership (TCO). This is a proven model.
Online Auctions: With the right approach and preparation, online auctions are powerful tools to achieve greater cost reduction.
- Six Sigma: We follow the six sigma methodology. This means that we apply statistics for problem resolution. Six Sigma has allow for millions in cost reductions to GE, Motorola, and Cummins, among others.
- RFXs: RFI, RFP, RFQ, Online Auction: We take advantage of technology and automation to deliver better and faster results for our customers.