In fact, in the introduction to this series, we suggested there are six different approaches to strategic sourcing. Marmanis and a great selection of similar new, used and collectible books available now at great prices. The following sourcing efforts are the key to developing opportunities. Measuring strategic sourcing and procurement maturity. This spend analysis book is currently the only reference that provides indepth. Act of organizations comparing key metrics of operations to others in the industry is called benchmarking. A careful spend analysis that ties technology and consulting expertise can boost spend visibility and help convert senseless raw data into strategic sourcing opportunities to achieve savings.
Beginning with a broad assessment and overview of contemporary spend analysis, the briefing set out to show just how much is set to change with the increasing processing power of. Spend analysis organizes procurement information via supplier hierarchies, commodity. Spend analysis process prep for strategic sourcing. Gao assessed 1 if agencies use spend analysis to obtain knowledge to improve procurement of goods and services and 2 how agencies practices compare to leading companies. Sourcing strategies and their implementation in the aerospace industry.
Spend analysis can help you get an accurate view of your organizations spending, your suppliers, and opportunities for improving your sourcing and procurement activities. How incorporating six sigma into strategic sourcing helps strengthen the supply chain in the early days of manufacturing, managers often relied on guesswork when adjusting their processes. Developing the strategic sourcing strategy is a fundamental part of the purchasing and supply management process. Few companies have employed standard procedures or systems to control spending from sourcing through purchasing compliance and quality assurance according to aberdeen group, the category spend management report series 2004. It is currently the only reference that provides indepth guidance. Spend analysis the window into strategic sourcing 1st. Spend analysis and benchmarking, strategic sourcing. Strategic sourcing also known as sourcing strategy or procurement strategy allows an organization to realize significant savings by evaluating its procurement costs across a number of spend categories. The window into strategic sourcing this is the first reference to provide indepth. Information technology sourcing strategy update san diego city council. And strategic sourcing advanced spend analysis is critical to understanding the current spend in indirect and direct categories. Sourcing strategies and their implementation in the. We provide analyses, information, spend analysis software and overall guidance to improve efficiency and strengthen cash flows across your entire organizational supply chain. Download making strategic sourcing a reality to know more about the pivotal role spend analysis plays in achieving strategic sourcing and also find the best practices for superior spend analysis.
The funding supports mildeps and odas in the implementation of strategic sourcing initiatives that provide benefit to the department. Whether purchasing goods or services, a few items or a few thousand items, procureports e. The results of a wellmanaged strategic sourcing initiative can be impressive and the benefits can be extended well beyond cost reduction. The first step of strategic sourcing is to assess opportunities by conducting a spend analysis, which is a quantitative technique used to better understand patterns in spending by examining costs. Spend analysis is the most critical component, and the starting point, of strategic supply management and is essential to achieving worldclass performance. Starting with the foundation level 1 today, this multipart research brief will. Making informed decisions during the strategic sourcing process is critical to ensure that your organizations procurement processes dependent on the spend data execute successfully. It is currently the only reference that provides indepth guidance on what. Energy drinks strategic sourcing analysis, sports drinks market, energy supplements, preworkout energy drink, sourcing, sourcing analysis, procurement, logistics, supply chain management solutions are now. The window into strategic sourcing 9781932159936 by kirit pandit. Cips has formulated positions on strategic sourcing as this is a key activity for purchasing. A procurementfocused taxonomy weve devised a method for categorizing spend into buckets that actually make sense to a category manager or strategic sourcing analyst a rapid turnaround. We also have many ebooks and user guide is also related with spend analysis the window into.
The first step in strategic sourcing details the baseline process that an organization should follow to establish a functional strategic sourcing program grounded on accurate expenditure. Discovering cost savings opportunities in sourcing. The window into strategic sourcing this is the first reference to provide indepth guidance on spend analysis. Strategic sourcing is a logical process involving the application of tools by. Spend analysis, the window into strategic sourcing. Access all areas of the cips knowledge online library including tools and templates and supply management stories.
Strategic sourcing methodology pdf semantic scholar. It is currently the only reference that provides indepth guidance on what spend analysis really is, what it involves specifically and how to use it in your journey to worldclass performance. The following sourcing efforts are the key to developing opportunities into cost savings and process efficiencies. Using spend analysis data to build your sourcing roadmap. Abstract this paper introduces spend analysis, spend management and supplier management field. The window into strategic sourcing is the definitive text on this important subject, written by leaders in the field.
Purpose the purpose of this document is to provide a workable procedure for the strategic sourcing methodology of procuring goods and services for th e. How incorporating six sigma into strategic sourcing helps. Using the spend analysis tool, enporion developed a customized market basket report. This market basket report allowed the client to quickly generate itemized spend and usage detail for each spend. The window into strategic sourcing is the definitive text on strategic sourcing, written by leaders in the field. Enhance your network and get connected to a global community of. Without the right visibility into spend data, suppliers, or related market information in hand, sourcing and procurement decisions often run counter to the business objectives. Online auctions are an integral part of the strategic sourcing process. Spend analysis is the starting point of strategic sourcing and creates the foundation for compliance and control. It provides an executive overview and technical details for practitioners on how a rigorous methodology can identify cost. Within the strategic sourcing process, spend analysis is one of the most critical process steps providing clear visibility into your organizations overall spend.
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