Putting The Strategy Back In Your Sourcing

Overview: Automated request for quotes (RFQs) and reverse auctions have practically become second nature to sourcing professionals who, as a rule, like to negotiate for the best price among the widest selection of qualified suppliers. The newest trend among enablers is to offer “end-to-end” sourcing solutions, which is an entire platform of strategic sourcing products. The market for strategic e-sourcing tools is growing at a 98 percent compound annual growth rate. There is something about strategic e-sourcing that has rendered it immune, or at least resistant, to corporate budget cuts. In addition, that something is a bottom-line saving. As most sourcing professionals know, purchased goods and services account for a little more than half of every dollar of revenue. In short, sourcing offers the single largest opportunity for an organization to reduce costs, improve productivity, and enhance overall performance. By now, any sourcing professional worth his or her salary knows the drill: 1.) Mobilize the team, 2.) Collect critical data, 3.) Analyze the data, 4.) Develop a new sourcing strategy, 5.) Initiate the strategy 6.) Negotiate and implement final agreements, and 7.) Manage supplier relationships. As strategic e-sourcing begins to really take off, most analysts expect that this sort of strategy -- evaluate the problems first and then find the tool, rather than vice versa -- will become a standard operating procedure.

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Format: HTML | Date: Dec 2001 | Pages: 1