What should be included in a strategic sourcing plan?
Analyze the supplier market and create a supplier portfolio. Define request for proposal criteria and templates. Negotiate with and select suppliers. Integrate suppliers into existing processes, onboarding any new vendors or outsourcing providers. Track performance metrics and optimize the sourcing plan, as needed.
How are vendors helping in the sourcing process?
Vendors are working on integrating advanced analytics and AI to make the sourcing process more effective. These capabilities can make recommendations based on past performance and current metrics and offer predictive models based on factors like market conditions, time of year and geopolitical factors.
How does strategic sourcing differ from conventional purchasing?
Strategic sourcing differs from conventional purchasing because it places emphasis beyond initial purchase price to focus on total cost of ownership and optimizing the sourcing process through ongoing market analysis and building relationships with suppliers.
Who are the major players in strategic sourcing?
These typically include functionality — and often have separate software modules — for e-sourcing, spend analysis, contract management and supplier relationship management. Major players according to Gartner include Coupa, GEP, Ivalua, JAGGAER, SAP, Synertrade and Zycus.
