{"id":2691,"date":"2009-07-15T14:09:00","date_gmt":"2009-07-15T14:09:00","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/2009\/07\/15\/whitepaper-wednesday-achieving-excellence-in-sourcing\/"},"modified":"2021-07-19T05:12:29","modified_gmt":"2021-07-19T09:12:29","slug":"whitepaper-wednesday-achieving-excellence-in-sourcing","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/whitepaper-wednesday-achieving-excellence-in-sourcing\/","title":{"rendered":"Whitepaper Wednesday &#8211; Achieving Excellence in Sourcing"},"content":{"rendered":"<p>Welcome back to another installment of Whitepaper Wednesday here on the Purchasing Certification Blog. This week, I\u2019ll be reviewing a piece of research entitled \u201cReaching Sourcing Excellence, Part 1: How To Keep 30 Cents of Every Dollar Spent\u201d from AMR Research.<\/p>\n<p>Don\u2019t miss updates on Procurement &amp; Supply Chain, Subscribe here!<\/p>\n<p>This research focuses on the reasons that sourcing programs aren\u2019t as effective as they could be. AMR\u2019s research claims that many sourcing organizations are failing to realize 30 cents of savings for every dollar of spend (for non-US readers, that\u2019s 30% of spend).<\/p>\n<p>So what can a sourcing organization do to capture all of the savings that\u2019s possible?<\/p>\n<p>AMR cites three recommendations:<\/p>\n<ul>\n<li>Deploy and use technology;<\/li>\n<li>Mandate skills and training for employees; and<\/li>\n<li>Put the fundamental piece of the puzzle in place<\/li>\n<\/ul>\n<p>I\u2019ll elaborate on each of these points.<\/p>\n<p>First, technology. You may think that the 30% of unrealized potential would be cut into by deploying basic sourcing\/auction technology. Actually, AMR says that the 30% unrealized potential is calculated after organizations have already saved 10 \u2013 20% by deploying the basic technologies. AMR claims that advanced technologies with \u201cbroader sourcing capabilities such<br \/>\nas optimization, and opportunity identification and execution across the entire sourcing workflow\u201d can help a sourcing organization add 15 \u2013 20% savings on top of the savings resulting from deployment of basic technologies.<\/p>\n<p>Second, skills and training. This research piece makes it clear that lack of well-rounded skills and comprehensive training represent a clear obstacle to an organization\u2019s ability to achieve its profit improvement potential. Poor performing organizations do no training, while others misguidedly feel good about providing training on their technology systems. But training that lacks a focus on the skills critical for sourcing success is inadequate. AMR suggests that \u201ctechnology by itself has been only a tactical solution because sourcing skillsets are improved for tool use, not the strategy or dynamics behind the philosophies, negotiation strategies, or business profitability requirements.\u201d<\/p>\n<p>Finally, the fundamental piece of the puzzle. What is this \u201cfundamental piece,\u201d you ask? It is aligning the sourcing strategy with business objectives.<\/p>\n<p>This research piece goes on to share a seven-step sourcing process and three approaches to sourcing used by an $8B North American telecom company.<\/p>\n<p>You\u2019ve probably noticed \u201cPart 1\u201d in the title of this research piece. There are apparently four more pieces forthcoming to complete this series. Because this piece was so well-done, I am really looking forward to those additional parts and hope to review them right here on this blog. So stay tuned!<\/p>\n<p>You can get your own copy of this research piece from AMR\u2019s Web site (search for \u201csourcing excellence\u201d from their home page). While most of AMR\u2019s research of this nature is limited to paying AMR Research clients, this particular document is available simply by signing up for a free \u201cpreview account.\u201d If you\u2019ve tried to get access to this type of material from other analyst\/research firms, you know how exciting this is! It is definitely worth checking out!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Welcome back to another installment of Whitepaper Wednesday here on [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":4111,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2691","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.13 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Whitepaper Wednesday - Achieving Excellence in Sourcing - Next Level Purchasing Association (NLPA)<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/whitepaper-wednesday-achieving-excellence-in-sourcing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Whitepaper Wednesday - Achieving Excellence in Sourcing - Next Level Purchasing Association (NLPA)\" \/>\n<meta property=\"og:description\" content=\"Welcome back to another installment of Whitepaper Wednesday here on [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.certitrek.com\/nlpa\/blog\/whitepaper-wednesday-achieving-excellence-in-sourcing\/\" \/>\n<meta property=\"og:site_name\" content=\"Next Level Purchasing Association (NLPA)\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/NextLevelPurchasing\/\" \/>\n<meta property=\"article:published_time\" content=\"2009-07-15T14:09:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-07-19T09:12:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/11\/nlpa-images-121.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"900\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Galo Matagay\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@nextlevelpurch\" \/>\n<meta name=\"twitter:site\" content=\"@nextlevelpurch\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Galo Matagay\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/whitepaper-wednesday-achieving-excellence-in-sourcing\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/whitepaper-wednesday-achieving-excellence-in-sourcing\/\"},\"author\":{\"name\":\"Galo Matagay\",\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/#\/schema\/person\/72d094fab77892483dfa6e061cb27eaa\"},\"headline\":\"Whitepaper Wednesday &#8211; 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