As we move into a 2016, it’s a safe prediction that buzzwords will continue to dominate the business world. “Strategic sourcing” is one buzzword that has permeated the procurement function for the past 20 years, but is often hard to describe. Almost every large procurement organization claims to be strategic, but what actually makes an organization strategic? This whitepaper identifies some of the information critical to acting strategically in a sourcing function.
Strategic Sourcing as a Way of Operating
A common distinction between tactical and strategic sourcing is that tactical sourcing reacts to short-term business needs, while strategic sourcing systematically aligns sourcing practices with long-term business objectives. Strategic sourcing relies on a holistic view of the business along with processes that promote longterm thinking.
Strategic sourcing managers need on-demand access to critical pieces of information about the business to make strategic decisions. The five essential pieces of information are: spend analytics, commodity trends, product quality data, supply data, and sales performance. Procurement leaders need to make it a priority to ensure sourcing manager have easy access to this information if they expect their organization to act strategically
Download whitepaper here.