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Strategic Sourcing overview | the 7 stepsMethodology, Purchasing, Strategic Sourcing --- 2006 Jean-Philippe Massin, 43,489 views
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Strategic Sourcing methodology is used to identify, examine, select and implement sourcing alternatives for a specific Sourcing Group (SG). It encompass the whole process for evaluating, selecting and aligning with supplier(s) to achieve operational improvements and support overall strategic objectives. Strategic Sourcing focuses on total costs and not just the purchase price; Strategic Sourcing assists an organisation by gaining a good understanding of its requirements, knowing how it must map to the existing supply market, and then develop a plan for both short and long-term objectives. There are many ways to segment a strategic sourcing program into a step by step approach. One is to divide it into seven steps as shown in the diagram below.
Key points to know are following:
- The Strategic Sourcing methodology assumes that Sourcing Groups (SGs) have already been defined, either through a Sourcing Opportunity Assessment or through any other mean.
- The methodology is designed to be carried out by an “SG team,” comprised of people with a broad range of backgrounds, playing several roles. For example, the SG team typically would include a decision maker, facilitators, technical experts (e.g., supply market experts, engineers) and other cross-functional members as representatives of the user community.
- The methodology provides general guidelines in areas such as finding potential data sources, identifying the appropriate depth of analysis and selecting the applicable sourcing and negotiation approaches.
Each step will be detailed in future posts.
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3 Pings to “Strategic Sourcing overview | the 7 steps”
13 Responses to “Strategic Sourcing overview | the 7 steps”
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1. Iryna Says:
April 10th, 2008 at 3:04 pmYour topic
“How to Qualify a Sourcing Group | SSM’s Step 1/7 – Strategic Sourcing ” does not open unfortunatelly… -
2. Iryna Says:
April 10th, 2008 at 6:55 pmHello? I really need to know more details about each step. How I can get it????
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3. The Doctor Says:
April 10th, 2008 at 7:29 pmTry:
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4. Jean-Philippe Massin Says:
April 17th, 2008 at 8:35 amShould be ok, did you try that: http://www.massin.eu/2007/04/23/how-to-profile-a-sourcing-group-ssms-step-17/
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5. Donna Lacka Says:
July 31st, 2008 at 3:44 pmEach step will be detailed in future posts. When will these be posted or where can I get the book mentioned above.
Thanks
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6. Donna Lacka, C.P.P., C.I.M. Says:
September 17th, 2008 at 2:01 pmI have now read alot of very valuable information on the 7 Step Strategy from this site and have found it vey informative. I have used this Strategy in my professional life with great success. For newcomers to the Procurement field I would suggest that you drink in as much information as you can on this subject in will be useful to you in your career. The negotiation strategy is key in the the seven steps and again I would suggest that you look into as much information as you can on this subject as possible as well. Great site!
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7. Moncler jackets Says:
September 15th, 2011 at 7:50 amIf so, Where could i download this template? if not, how much does it cost? Thanks a lot!
http://www.moncler2doudoune.com/ -
8. Niklas Says:
October 5th, 2011 at 9:40 amStrategic Sourcing Methodology is a good tool.
However, sourcing has a lot more to do with creating and sustaining relationships (internally and externally), than with different techniques, never forget that. Never forget that all the saved money in the world will not pay for a supplier not willing to go the extra mile for you. And never forget that no 2 suppliers are the same.
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9. ??? Says:
November 30th, 2011 at 12:10 pmdo with creating and sustaining relationships (internally and externally), than with different techniques, never forget that. Never forget that all the saved money in the world will not pay for a supplier not willing to go the extra mile for you. And never forget
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10. ??? Says:
November 30th, 2011 at 12:11 pmsustaining relationships (internally and externally), than with different techniques, never forget that. Never forget that all the saved money in the world will not pay for a supplier not willing to go the extra mile for you. And never forget
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11. ??? Says:
November 30th, 2011 at 12:12 pmrelationships (internally and externally), than with different techniques, never forget that. Never forget that all the saved money in the world will not pay for a supplier not willing to go the extra mile for you. And never forget
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12. ?????? ????????? Says:
November 30th, 2011 at 12:13 pmgeneral guidelines in areas such as finding potential data sources, identifying the appropriate
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13. hollister Says:
May 17th, 2012 at 5:05 amIn the world the most melancholy unique of distance is two people was far distance, strangers, suddenly one day, they meet, and love each other, distance become very near.
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