Start Up Strategic Sourcing Handbook

Table of Contents

• Introduction 4
• Selling Strategic Sourcing to Your Leadership and Organization 5
• Starting Up Your Strategic Sourcing Project 20
• Aligning Customer Requirements and Sourcing Strategies 29
• Collecting Data and Categorizing Spend 37
• Estimating the Sourcing Opportunity 45
• Assessing the Supply Base 48
• Developing Sourcing Strategies 52
• Conducting Sourcing Events 57
• Establishing Negotiating Strategies 62
• Execute Negotiations 65
• Issuing Contract 69
• Awards 69
• Implementation and Supplier Monitoring 73

Introduction

Thank you for your interest in our Start Up Strategic Sourcing handbook. Strategic sourcing is a complex process that requires a planned approach to realize optimal agreements with your suppliers. The tool examples (spreadsheets, presentations, and word documents) were developed using the experience of over 20 years of consulting practice.

The Start Up Strategic Sourcing process follows twelve steps that follow a detailed project plan. The first step is selling the project to your organization. It may be the most difficult step. In our many consulting engagements and industry positions it has been our experience that the benefits of a strategic sourcing process must constantly be promoted. Organizations that have tens of thousands of employees and significant strategic sourcing and procurement organizations will have departments that don’t use a strategic sourcing process.

This handbook is not theoretical. It leads you through the tasks necessary for a successful project. The project plan is extensive and has many tasks that you may not need on every strategic sourcing project.

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