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Strategic sourcing is a complete, systematic approach
to analyzing and managing your entire purchasing process,
including what goods you purchase and how, when and
where you purchase them.
By consistently monitoring sourcing- and supplier-management
performance, strategic sourcing strengthens buyer-supplier
relationships and greatly reduces supply-chain-sourcing
costs.
A strong focus on strategic sourcing will deliver immediate,
measurable benefits for your company, including:
- Reduced sourcing process expenses
- Reduced inventory expenses
- Reduced cycle times
- Improved delivery time
- Reduced expenses and administrative overhead
- More effective and efficient interaction with suppliers
The benefits to your company extend well beyond
process improvements, empowering your employees
to buy more strategically and delivering both an
immediate and ongoing return on your investment.
According to Cap Gemini Ernst & Young, effective
strategic sourcing is driven by performance in five
critical areas:
- Sourcing and Contract Management (supplier selection,
commodity sourcing and contract negotiation)
- Supplier Management (supplier development, supplier
relationship management and supplier performance management)
- Specification Management (design management, cost
management, component and product standardization
and supplier performance evaluation)
- Transaction Management (requisitioning, creating
purchase orders, order tracking and receiving)
- Organization (organization design, performance planning,
performance metrics and cost measurement)
Our procurement software-PurchaseSmart™-supports
all five of these critical areas with an extensive set
of real-time analytical
tools and reporting capabilities. PurchaseSmart
gives you a window into your entire purchasing process
including requisitioning,
ordering, negotiation,
order tracking
and receiving. You can also monitor buyer and supplier
performance anytime, in real time.
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