Strategic sourcing may be new to some of you reading this post, but the term is present in the conversations of almost all purchasing department professionals. As the name suggests, it is a strategic and intelligent way of acquiring products and services on the market, that is, optimizing the supply chain through different processes and perspectives. After all, even if purchases are made to meet the needs of internal sectors, the processes involved are part of and impact the business as a whole.
This approach promotes a complete assessment of all aspects related to the acquisition of materials or products, such as logistics and costs, for example, and incorporates more intelligence into negotiations. A strategic and analytical perspective is a trend that should be incorporated into all departments of an organization, since they must work in a connected manner, as their results are also interconnected.
Aware of the benefits and competitive advantages that an organization can acquire by implementing strategic sourcing, Kearney consulting suggests that this be done in stages. Here are the steps:
1. Analyze the purchasing process
For any action to be considered strategic, it must be developed on a real-world basis. Therefore, the first step is to categorize, based on pre-defined criteria, the products used, the cost patterns and the departments involved in the process.
2. Develop a strategy based on business objectives
As we have seen, any strategic activity must be aligned with the organization's objectives. Therefore, approach business managers and the board of directors and establish a communication flow that makes sense to all sectors and departments involved in the purchasing and acquisition process from start to finish.
3. Assess the market and create a portfolio of suppliers
At this stage, an in-depth study and analysis of current and potential suppliers should be carried out, considering their market positioning, associated costs, added values, and risks and opportunities. Therefore, seek legal assistance and materials disclosed to investors.
4. Prepare RFP documents
Just like the departments in your organization, suppliers also need to be aligned with the business. Therefore, make it clear what the company expects in terms of performance and product quality. Acting in this way reduces the risk of hiring suppliers who do not meet the expectations of the requesting sector, as well as putting you in an advantageous position to demand compliance with the guarantees that have already been previously agreed upon.
5. Negotiate with selected suppliers
Just like in the previous step, this negotiation ensures that the organization is not at a disadvantage when selecting and hiring suppliers. Each transaction must be the responsibility of a single employee, who will be the link between the company's interests and the third party. This is the time to clarify any remaining doubts and choose the one that offers the best cost-benefit.
6. Carry out the bureaucratic part properly
This is the final stage of contracting suppliers – and not strategic sourcing – but it is just as important as any other. At this point, the chosen company creates and signs service supply contracts, so this is a step that must be carried out together with the legal department. Therefore, for all previous stages to be valid and your organization to be supported with the requested guarantees, the final contracting documents need to be prepared and reviewed very carefully.
7. Monitor contract performance and progress
Continuous monitoring of compliance with the signed contract is essential to ensure that expectations are being met – whether in terms of cost or quality of service. If not, interventions and planning optimizations can be made. In this evaluation process, involve leaders from other departments, especially those that requested the purchase or contract, as they may have different perceptions and perspectives.