Strategic Sourcing

The Strategic Sourcing process is a rigorous methodology that involves detailed analysis of current spend, market landscape, and potential options to address a business need for a more competitive cost structure.

The targeted outcome of any Strategic Sourcing initiative is aimed at:

  • Cost reduction
  • Margin enhancement
  • Cash flow improvement
  • Risk mitigation
  • Strengthening key supplier relationships

Typical business challenges that can be addressed through a Strategic Sourcing exercise include:

  • Choosing the right supplier partners
  • Mitigating impact of market forces on required purchases over the longer-term
  • Where to look for meaningful cost savings
  • Identifying the right mix of purchased goods and services to adequately support the business
  • Visibility into whether current purchase costs are market competitive 

The Creovia Group offers expertise in the following areas:

  • Market research
  • Category spend profiles
  • Benchmark pricing / "Should Cost" models
  • Payment terms analysis
  • Formal category strategies
  • Strategic negotiation support
  • Supplier scorecarding and competency evaluation