I hope that you have enjoyed the article “Sourcing Decisions: How To Support Them.”

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There is one very important thing that I really want you to take from this article.

Year-over-year cost savings is often the “selling point” that sourcing professionals use to convince executives to accept their recommendations. While this is, and will always be, important, it is a somewhat overly myopic metric.

For it is not just the comparison against past performance that makes a sourcing decision a good one. It is also the comparison between alternatives going forward. Unfortunately, that is a point often missed.

While price and ability to perform are critical to executives, so are total cost, value, and risk. Address those items numerically in your recommendation and you’re well on your way to successfully selling your superiors on a sourcing decision.

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