Sourcing - Strategic Sourcing Offers More Than Cost Reduction

Finding a Sourcing Advisory Method that guides clients through every step of the journey can be a difficult challenge. Many consulting firms offer a great source of ideas but are not around to see them through to delivery.

Whenever the consultants get engaged, they need to drive value from day 1. For effective strategic sourcing strategies to be implemented, a holistic service is required across the spectrum of strategic, operational, sourcing and compliance issues that inevitably arise during significant change programmes.

It's important to leverage both the sourcing strategy and the operating model by tying them in to each other to increase the returns of both initiatives. Sourcing can therefore be about much more than just cutting costs, but about creating real business value.

When selecting an advisory for your sourcing programme it's important that they have expertise from several important disciplines including: buy side, sell side, legal and advisory.

Strategic sourcing can be an enabler and continuously improve and re-evaluate purchasing activities to ensure cost effective change processes are implemented to get maximum results from any strategic sourcing programme.

There are software tools available to supplement personal consulting activities and the most impactful include Visual Sourcing and Harmony.

Combining a holistic strategic vision with appropriate software tools and experienced personal advice is the way to get a well-rounded and effective sourcing solution.

So next time you are tasked with reducing costs by implementing a sourcing strategy, ensure you consider working with consultants who bring to bare significant industry experience as well as appropriate tools.