Just How Many Strategic Suppliers and How to Select Them.

Strategic sourcing is a disciplined process organizations implement in order to more efficiently purchase goods and services from suppliers. The goal is to reduce total acquisition cost while improving value. A Strategic sourcing strategy should be initiated immediately. A comprehensive sourcing methodology should be followed religiously to include strategic alliance and strategic relationship building with key suppliers. Key supplier alliances must be established. Supplier rationalization (reduction) must be accomplished first and dramatically. Many consulting firms offer a Strategic Sourcing Management solution that walks online users through each step of a consulting-type procurement methodology, including gathering data, analyzing requirements, and setting strategy, as well as executing e-procurement through shopping e-marketplaces, conducting reverse auctions, and using other methods that are built into the application.

Here is a Strategic Sourcing Step Process that outlines an iterative six-step process:

·       Assess Opportunity

·       Assess Internal Supply Chain

·       Assess Supply Markets

·       Develop Sourcing Strategy

·       Implement Strategy

·       Institutionalize Strategy