The combination of Strategic Sourcing, eProcurement, and Supplier Relationship Management is the best approach to significant Procurement Cost Savings
Strategic Sourcing is the fastest way to cost reduction for most companies yielding 5% to 25% reduction in materials and services costs
- How well do you manage procurement of direct and indirect good and services?
- How well do you manage contracts with existing supply base?
- How fragmented is your spend (# of vendors in each category)?
SAVINGS COMPONENTS
With eProcurement added to Strategic Sourcing, savings are increased another 2% to 5% and the sourcing strategy is sustained
- Are you realizing your planned strategic sourcing savings targets?
- How efficient is your existing procurement process? How effective are your existing spend management policies? How does your organization control spend? What is your annual spend?
- What procurement technologies do you utilize?
- How do you control off-contract spending?
SAVINGS OVER TIME
Supplier Relationship Management increases savings another 2% to 5% and enables consistent and efficient sourcing processes throughout the organization
- What portion of the sourcing and procurement process is manual and paper-based?
- What and how many systems are used to procure goods & services?
- How much off-contract purchasing takes place?
- How do you enable consistent and efficient sourcing processes throughout your organization?
