In developing standardized procurement processes, operations and purchasing decision-makers should consider strategic sourcing as a part of their procurement best practices. However, they should keep in mind that strategic sourcing is not a single project but rather a key continuous process.
For those companies sincere about establishing control over their supply chains, incorporating strategic sourcing principles should be evaluated. Decision makers must ask: Do we control our supply chain, or does our supply chain control us?
Implementing strategic sourcing as a best practice can certainly increase the company’s profit margins if approached correctly. Even if your company has only recently added a procurement or supply chain manager, then the company is ready to begin exploring strategic sourcing.
It is important to remember that the goal is not to fixate on daily price and delivery time challenges. Instead, approach strategic sourcing as implementing processes and effective relationships, and the overall advantages realized through an effective relationship to achieve quality, price and delivery goals.
See if outsourcing makes sense for your company here: