I have presented in the post SSOA III/IV how to prioritize SGs, depending on 1) the potential savings they could generate and 2) their easiness of implementation. The next and last phase is to define the implementation plan of your Strategic Sourcing program. There’s no obligation at all to translate your excel spreadsheet with SGs [...]
When the time comes to evaluate the Total Cost of Ownership (TCO) of a product/Service, it is better not to forget any critical element in the calculation of the Total Acquisition Cost (TAC). Here is a useful graph that might help, underlining as well the ‘usually forgotten’ elements.
Click image to enlarge
Case study example: considerations [...]
In phase I/IV of a Strategic Sourcing Opportunity Assessment (see my HOWTO scope purchases post), you need to distribute your Sourcing Groups into 4 different categories (Standard, Commodity, Strategic, Bottleneck), depending their business impact and their supply-market-complexity. Below is a useful template to categorize each of your Sourcing Groups, based on the famous Porter’s 5 [...]
Last time, I’ve explained in the post SSOA Part II/IV how to define which strategy and tactic to apply per SG. The third and next step is to define priorities. Which SG shall you start with, knowing you will launch consecutive ’strategic sourcing waves’ limited to the resources you can mobilize?
Basically, priorities depend on 2 [...]
In a former post, I’ve described – briefly but good enough I hope – how to scope the purchases to include in a Strategic Sourcing program. This was the Part I/IV of the Strategic Sourcing Opportunity Analysis methodology (SSOA) I wanted to share online.
Let me now bring you to the second step, starting once you [...]
Using e-Tools or making savings on its Purchases shall always start by a Strategic Sourcing Opportunity Assessment (SSOA) so to identify right priorities at start and spend rigth effort on right Sourcing Groups. Here is a basic 4-step-methodology that might help you to get started.
In this post, I will just explain the first step.
Howto [...]
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