What is Strategic Sourcing: understand the concept of strategic B2B purchasing

strategic-sourcing

strategic-sourcing

strategic sourcing accumulators is a methodology for remote services of “strategic purchasing”, which helps transform the supply area into an important department for the financial balance of companies. In other words, the concept shows that organizations should not only aim for low acquisition costs – a path that has persisted for many years – but also the consequences of acquiring each product and a strategic relationship with suppliers.

There are other aspects to be considered so that acquisitions are, in fact, profitable and lucrative. The models of strategic sourcing seek to create value and generate competitive advantage, through the choice and selection of the best business partners. To do this, they consider several factors in negotiations, such as suppliers, price, lead time, quality, among others, in order to achieve lasting partnerships that promote business growth.

What is strategic sourcing?

The concept of strategic sourcing began to be used in the 90s and is a methodology that performs a complete analysis of the total acquisition cost (TCO – Total Cost of Ownership) of products and services acquired by a given company. The evolution of the concept over the years has brought different forms and stages of implementation.

Nowadays, the strategic purchasing process is broader and recognizes that the supplier relationship and taking advantage of opportunities are fundamental for a successful purchasing management.

Through the methodology, buyers analyze external, internal, financial and logistics costs in order to maximize cost-benefit of each acquisition, the quality, the agility of the operational processes and the performance of the production chain as a whole.

Below, learn about the main steps of the strategic sourcing:

Purchasing strategy development

If before the purchasing area's mission was only to acquire products and services, with the methodology of strategic sourcing a purchasing strategy involves the entire supply chain: productivity, quality, price, punctuality, storage, among others. The definition of Purchasing KPIs It is also a procedure that helps measure the area's performance.

Market analysis and purchasing trends

Staying up to date with the market and monitoring the history of acquisitions helps predict seasonal opportunities and make more assertive decisions. One of the related purchasing KPIs is price evolution, which measures the fluctuations in prices during a given period during the acquisition process.

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Management and relationship with suppliers

Controlling and managing supplier-related challenges, such as compliance with tax, fiscal and labor rules, are essential steps to minimize risks in the supply chain. In addition, the relationship with suppliers, within the strategic sourcing, is done in a collaborative, transparent and sustainable way.

In this post, we saw that the strategic sourcing, one of the methods among many others available on the market, is much more than buying and negotiating products and services.

We also show here that a strategic sourcing process is the ideal way to find the best partners and therefore achieve savings and, consequently, more results for your company.

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