Jan 19, 2011 a successful sourcing strategy requires a thorough understanding of a companys business strategy, the resources required to deliver that strategy, the market forces and the unique risks within the company associated with implementing specific approaches. Sep 18, 2019 strategic sourcing is a uc systemwide collaborative effort to drive value and increase customer satisfaction by enhancing product quality and service levels, while leveraging the uc buying power to significantly lower total costs. Strategic sourcing will allow an organization to realize significant savings. The strategy involves integration of its objectives in line with or confirming to the objectives of stake holders in operations, finance. This document details a 4phase framework to procurement strategy, outlining time frames, activities, and outputs. Strategic sourcing methodology pdf semantic scholar. In this paper, we examine the impact of eprocurement and strategic. Mar 21, 2015 the sourcing strategy derives from the business plans coming from company strategy and hr strategy.
This includes those creating the demand for the goods and services, the internal processes, specifications, as well as, operational practices. It sourcing is becoming an increasingly strategic tool that cios can use to deliver more with less, leverage external expertise and enable fastpaced business strategy change. Procurement strategy and contract selection capital works management framework guideline 6. This strategy serves as a compass to guide the organization and should be updated at least annually to ensure ongoing alignment with the overall corporate strategy. The national gallery, london, uk procurement in 2020 will look very different than it. On the other hand, a global sourcing strategy must be executed by a suitable organisation. A strategy for improving supply chain management is to configure products late in the supply chain and to increase commonality across products. The combined strength realized by the joint purchasing power of all the uc campuses, medical centers, and labs deliver substantial pricing discounts from regional. Strategic sourcing is organized since some type of methodology or process is needed. There is a sourcingstrategyservice that is used to perform this task, which will make use of one or many sourcingstrategymappers. General motors initiated systematic strategic sourcing in the. In a previous post i discussed what strategic sourcing was all about, in todays post i would like to introduce what i call the seven steps to strategic sourcing.
Developing and implementing a strategic sourcing strategy. The document is supported by an outline implementation plan. Jun 08, 2016 this detailed document will be the final sourcing strategy that will be subject to executive approval before execution. Sourcing strategy for procurement template purchasing power. Enumerate the things you need to source functions, services, resources, capabilities, etc. Jul 09, 2014 in a previous post i discussed what strategic sourcing was all about, in todays post i would like to introduce what i call the seven steps to strategic sourcing. In this section we present a six step plan for creating a sourcing strategy. Strategic sourcing is a logical process involving the application of tools by skilled, competent and knowledgeable people. Developing a sourcing strategy doesnt need to be difficult.
In contrast to single sourcing, multi sourcing involves competition between suppliers, and avoids lockin to a single supplier for a broad range of services for a long period of time see above, single sourcing. Strategic sourcing is a structured process to source large recurring spend. Jan, 2016 single sourcing and reuse in technical documentation is getting more and more widespread these days. Traditionally, sourcing was considered to be the identification of new or potential suppliers. What is sourcing strategy and a 9 step guide to create one. It can make working with complex documentation much more efficient.
By our definition, strategic sourcing is an organized and collaborative approach to leveraging targeted spend across locations with select sup pliers that are best suited to create knowledge and value in the customer supplier interface. Description possible tactics team action items individuals responsible deadlines online recruiting not reaching majority of applicants, especially young college grads a large percentage of employees hired or entry level jobs are seeking. If you diagnose there will only be a spike in required workforce, not a constant need, then hiring may. Sourcing strategy for procurement template purchasing. Strategic sourcing was coined and is used when the activities of sourcing are directly tied to a sourcing strategy. With the increase of on line buying and sourcing of goods and services, educators, consultants, writers, and industry leaders have spent a great deal of time and resources attempting to improve the identification and selection of suppliers and the associated purchasing processes. Use this template in conjunction with the project blueprint, create an it sourcing strategy.
This approach takes into consideration the entire cost of ownership. The approach adopted includes the following phases. This document details a 4phase framework to strategic sourcing, outlining time frames, activities, and outputs. A sourcing strategy can cover one or more business objectives. A model of interrelated decisions article pdf available in supply chain forum 71 january 2006 with 19,8 reads how we measure reads. Before selecting the procurement strategy for a government building project, whether at a strategic or detailed level, it is necessary to first identify the factors which will determine the. Richards investment strategy source at least 1 property a week for property investment deals purchase a new property every 6 to 8 weeks depending on availability of finance. In a global enterprise, it is possible for one purchasing decision to impact numerous business processes or departments including manufacturing, receiving.
H istorical context analysis of historical context involves connecting a document to specific historical events, to specific circumstances of time and place, andor to broader regional, national, or global processes. What it is what it is not focused on the total cost of ownership tco incorporating. Today, some of the most commonly heard terms for buying include. Procurement strategy framework linkedin slideshare. Sourcing strategies and their implementation in the aerospace. Sourcing strategies and their implementation in the. Cips has formulated positions on strategic sourcing as this is a key activity for purchasing. Lastly sourcing strategy involves planning to competitive buying sources for its raw materials, components and services along with alternative variables.
Charting the course why procurement must transform itself by 2020 3 the fighting temeraire, joseph turner, 1839 source. Seven steps to strategic sourcing in the supply chain. This document helps in ensuring the efficiency of using resources and acquiring new items that can benefit the business and its operations in the best way possible. Sample recruitment strategy planning template strategy strategy is designed to close this gap.
Strategic purchasing young procurement professionals. Five steps to building a successful procurement strategy. Creating a sourcing strategy, therefore involves more. This template does not follow the 7 step strategic sourcing methodology however it is an easy and intuitive tool for developing category sourcing strategies. Category management enables the government to eliminate redundancies, increase efficiency, and deliver more value and savings from the governments acquisition programs. Hence implementation is often hampered by manual and slow. Benchmarked annual savings have been inputted for several spend categories it hardware, it consumables, it software, it contrators, office equipment, office supplies, mobile telephony, fixed line telephony, and marketing. The extreme case is configuration by customers and.
Strategic purchasing and supply management it might also provide a presentation of a coming. Single sourcing and reuse in technical documentation is getting more and more widespread these days. Sourcing strategy template infotech research group. This document sets out procurement office, road map strategy for the period of 2018 to 2023 and sets our objectives through. For free, you can download these procurement strategy reports, prepared as pdf guides, analysis reports, and even case studies. Sourcing strategy template week one of ten templates in ten weeks. Dec 07, 2010 strategic sourcing will allow an organization to realize significant savings.
The strategic sourcing template is the first procurement template in our series ten templates in ten weeks. It is a systematic procurement process and one component of supply chain. Cloud computing is one of the more prevalent building blocks of an it sourcing strategy. Category management and strategic sourcing defined category management is an approach the federal government is applying to buy smarter and more like a single enterprise. Strategic sourcing savings estimation tool excel flevypro. A multi sourcing structure generally has the following features. The 5 principles of single sourcing in technical documentation. A procurement strategy is one of the most important tools that a procurement organization has to maximize its value contribution to the company. Developing and implementing a strategic sourcing strategy cips has formulated positions on strategic sourcing as this is a key activity for purchasing and supply management professionals. Sourcing strategy scm supply chain resource cooperative. Charting the course why procurement must transform itself.
Its not just about cost savingswhich was the traditional mindset of the procurement function, says. In the manage sales channels app, you can assign one sourcing strategy to each sales channel. A procurement strategy plan is one of the most important documents or plan examples that your business should have. Cips has formulated positions on strategic sourcing as this is a key activity for purchasing and supply management professionals. This is a simple macrodriven excel spreadsheet for projecting cost savings driven by strategic sourcing. Sourcing strategy deals with planning, designing and building a reliable and competitive supplier base, determining the strategy for procurement, defining pricing strategies and supply chain requirements. The strategy mappers will help determine which sourcing strategies should be used to source the given sourcing context. Alliances versus eprocurement find, read and cite all the research you need on researchgate. Strategic sourcing goes beyond negotiating for better prices with suppliers. Pyke and others published sourcing strategy and supplier relationships.
You cant help but learn how to be a wiser business person with these resources. Strategic sourcing also known as sourcing strategy or procurement strategy allows an organization to realize significant savings by evaluating its procurement costs across a number of spend categories. Developing the strategic sourcing strategy is a fundamental part of the purchasing and supply management process. The strategic sourcing process requires an organizedapproach or method that allows a supply chain function to systematically work on spend areas or processes. The sourcing strategy development phase is an iterative process that involves deep dive analyses of the citys current it environment, including utilized resources and.