The Sourcing Advisors Group approach integrates the five (5) relevant dimensions of decision-making and is based on a balanced mix of all objectives in procurement management, including:
- Permanent and structural costs reduction
- Operational and vendor management risk mitigation
- Improve operational efficiency and eliminate ‘busy work’
- Normalize and partner with suppliers from a position of strength
- Drive innovation & growth
Most firms have yet to scratch the surface the surface of the cost reduction potential available based on their purchasing power. Financial data shows clearly that for most firms, vendor spending is increasing as fast – or faster – than revenue growth. Indisputably, most firms have substantial opportunity to increase EBITDA by 20%+, usually within about a year.
In addition to cost reduction, second order benefits derived from a comprehensive strategic sourcing efforts includes operational efficiency, elimination of ‘busy work’, ability identify and mitigate vendor risk, and capacity to engage with select suppliers on innovation and growth opportunities.
Beyond strategic sourcing, many in procurement have discovered that solution implementation is a difficult process. Leverage experienced program / project management professionals will typically both accelerate time-to-market, reduce implementation costs and accelerate solution value.
More broadly, digital transformation within the procurement function often require expertise including traditional process improvement, identification of core vs non-core functions for potential outsourcing, definition of process, talent and technology gaps to develop remediation plans as well as scope potential solutions that meet your specific needs.
