The Strategic Sourcing Plan of Attack<\/h3><\/div><\/div><\/div>PurchTips edition #105<\/p>\n<\/div>
Does Your Strategic Sourcing Plan Flow Nicely?<\/h4><\/div><\/div><\/div>Every strategic sourcing organization should have a long-term plan for its work. I suggest a three-stage plan.<\/p>\n
Stage 1: “The Easy Wins.” When launching a new process, starting with little risk and gradually accepting more is wise. So begin your strategic sourcing initiative with a category where success is easier to achieve.<\/p>\n
Office, shop, and janitorial supplies are often the first “easy wins” pursued. Why? Well, in these industries, there are many good suppliers who compete hard against each other. In many cases, any big supplier can perform. And the price wars you incite can produce nice savings.<\/p>\n
Demonstrating that good performance and sizable savings can be achieved through strategic sourcing is vital – when a strategic sourcing initiative is announced, your internal customers aren’t exactly throwing confetti and high-fiving each other in the hallways. They are skeptical. Good results in Stage 1 will help your cause.<\/p>\n
Stage 2: “Bread & Butter.” After the strategic sourcing concept is proven in Stage 1, then organizations tend to address their “bread and butte” \u2013 those products and services that are close to the core of what they are in business to do. In manufacturing, the bread and butter includes raw materials and subcontracted services.<\/p>\n
Bread and butter categories are where big money is spent and where big money can be saved. But there’s also bigger risk, so you must perfect strategic sourcing before you mess with your organization’s core competency.<\/p>\n
Stage 3: “Non-Traditional Categories.” So after a purchasing department gets through Stage 2 and saves the company tons of money, does the staff just sit back and revel in their success? Of course not! They now seek other opportunities to use sourcing to save money.<\/p>\n
Stage 3 involves addressing categories that have been traditionally managed outside of purchasing. These areas include health benefits, advertising, travel, and fleet services. Identifying these areas and learning to work with your new internal customers is a challenge all to itself. We’ll address the challenges of sourcing non-traditional categories in a future edition of PurchTips.<\/p>\n<\/div><\/div><\/div><\/div><\/div>
Do You Want a More Rewarding Procurement Career?<\/h5><\/div>![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/12\/spsm_verify.jpg\" "\\"spsm_verify\\"")
<\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.<\/p>\n
Earning your SPSM Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!<\/p>\n<\/div>
Download<\/span><\/a><\/div><\/div><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div>![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/12\/services.jpg\" "\\"services\\"")
<\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
PurchTips edition #105<\/p>\n<\/div>
Does Your Strategic Sourcing Plan Flow Nicely?<\/h4><\/div><\/div><\/div>Every strategic sourcing organization should have a long-term plan for its work. I suggest a three-stage plan.<\/p>\n
Stage 1: “The Easy Wins.” When launching a new process, starting with little risk and gradually accepting more is wise. So begin your strategic sourcing initiative with a category where success is easier to achieve.<\/p>\n
Office, shop, and janitorial supplies are often the first “easy wins” pursued. Why? Well, in these industries, there are many good suppliers who compete hard against each other. In many cases, any big supplier can perform. And the price wars you incite can produce nice savings.<\/p>\n
Demonstrating that good performance and sizable savings can be achieved through strategic sourcing is vital – when a strategic sourcing initiative is announced, your internal customers aren’t exactly throwing confetti and high-fiving each other in the hallways. They are skeptical. Good results in Stage 1 will help your cause.<\/p>\n
Stage 2: “Bread & Butter.” After the strategic sourcing concept is proven in Stage 1, then organizations tend to address their “bread and butte” \u2013 those products and services that are close to the core of what they are in business to do. In manufacturing, the bread and butter includes raw materials and subcontracted services.<\/p>\n
Bread and butter categories are where big money is spent and where big money can be saved. But there’s also bigger risk, so you must perfect strategic sourcing before you mess with your organization’s core competency.<\/p>\n
Stage 3: “Non-Traditional Categories.” So after a purchasing department gets through Stage 2 and saves the company tons of money, does the staff just sit back and revel in their success? Of course not! They now seek other opportunities to use sourcing to save money.<\/p>\n
Stage 3 involves addressing categories that have been traditionally managed outside of purchasing. These areas include health benefits, advertising, travel, and fleet services. Identifying these areas and learning to work with your new internal customers is a challenge all to itself. We’ll address the challenges of sourcing non-traditional categories in a future edition of PurchTips.<\/p>\n<\/div><\/div><\/div><\/div><\/div>
Do You Want a More Rewarding Procurement Career?<\/h5><\/div><\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.<\/p>\n
Earning your SPSM Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!<\/p>\n<\/div>
Download<\/span><\/a><\/div><\/div><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div><\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
Every strategic sourcing organization should have a long-term plan for its work. I suggest a three-stage plan.<\/p>\n
Stage 1: “The Easy Wins.” When launching a new process, starting with little risk and gradually accepting more is wise. So begin your strategic sourcing initiative with a category where success is easier to achieve.<\/p>\n
Office, shop, and janitorial supplies are often the first “easy wins” pursued. Why? Well, in these industries, there are many good suppliers who compete hard against each other. In many cases, any big supplier can perform. And the price wars you incite can produce nice savings.<\/p>\n
Demonstrating that good performance and sizable savings can be achieved through strategic sourcing is vital – when a strategic sourcing initiative is announced, your internal customers aren’t exactly throwing confetti and high-fiving each other in the hallways. They are skeptical. Good results in Stage 1 will help your cause.<\/p>\n
Stage 2: “Bread & Butter.” After the strategic sourcing concept is proven in Stage 1, then organizations tend to address their “bread and butte” \u2013 those products and services that are close to the core of what they are in business to do. In manufacturing, the bread and butter includes raw materials and subcontracted services.<\/p>\n
Bread and butter categories are where big money is spent and where big money can be saved. But there’s also bigger risk, so you must perfect strategic sourcing before you mess with your organization’s core competency.<\/p>\n
Stage 3: “Non-Traditional Categories.” So after a purchasing department gets through Stage 2 and saves the company tons of money, does the staff just sit back and revel in their success? Of course not! They now seek other opportunities to use sourcing to save money.<\/p>\n
Stage 3 involves addressing categories that have been traditionally managed outside of purchasing. These areas include health benefits, advertising, travel, and fleet services. Identifying these areas and learning to work with your new internal customers is a challenge all to itself. We’ll address the challenges of sourcing non-traditional categories in a future edition of PurchTips.<\/p>\n<\/div><\/div><\/div><\/div><\/div>
Do You Want a More Rewarding Procurement Career?<\/h5><\/div><\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.<\/p>\n
Earning your SPSM Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!<\/p>\n<\/div>
Download<\/span><\/a><\/div><\/div><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div><\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
<\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.<\/p>\n
Earning your SPSM Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!<\/p>\n<\/div>
Need Better Performance From Your Procurement Team?<\/h5><\/div><\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
<\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/12\/services-contracting.jpg\" "\\"services-contracting\\"")
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