UNDERSTAND:  How do we think about Strategic Sourcing? 

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Even the best companies rarely think strategically about sourcing their needs.  Many companies’ external expenditures represent over 50% of gross revenues.  Managing this spend well is essential to delivering both the top- and bottom-line goals of an organization.

To be the most impactful, strategic sourcing efforts must be enabled by the right culture, strong leadership and appropriate organization design. GrayLine Consulting defines Strategic Sourcing as consciously and selectively applying business strategy and relationship management skills to purchased expenditure areas in a way that optimizes the results of your total business.  Strategic sourcing efforts involve more than the purchasing resources within an organization.  In its ultimate form, strategic sourcing efforts will be a critical part of the overall company business strategy.  To be the most impactful, strategic sourcing efforts must be enabled by the right culture, strong leadership and appropriate organization design.

Strategic Sourcing is a combination of developing sourcing skills and engaging deep with the organization being supported, as reflected in the following diagram:

“Strategic Sourcing is not rocket science, but it is a science” (GLC Strategic Sourcing Fundamental #1).  Let us help you learn and reapply the best practices that constitute the science of Strategic Sourcing.