Strategic sourcing solution begins with a review of company needs and previous spending, followed by the development of a strategy plan, data collecting, market analysis, and finally the selection of a supplier roster.
Its aim include identifying new cost savings, reducing operational risk, speeding sourcing decisions, improving sourcing process quality, and discovering new supplier innovations.
It’s important to note that strategic sourcing plays a crucial role in building a proactive approach to counter disruptions and setting up strategic sourcing solution is essential to gain competitive advantage.
At Paragon we build a strategy on how to approach every spend category:
Opportunities Assessment
We understand the spend category of every component that the organization procures including demand forecasting, what benchmarks and standard pricing data are available, etc.
Evaluate Supplier Landscape
Get a better understanding of major suppliers to help you create a sourcing plan and select the best suppliers for specific products or needs. We execute an in-depth analysis to understand and evaluate their profiles and only then begin the request for proposal (RFP) or request for quote (RFQ) process with shortlisted vendors.
Select The Right Supplier, Negotiate And Close
Engage with suppliers to reach an acceptable purchase price and fulfilment terms. Once terms are established, move to close and begin the fulfilment process.
Performance Tracking
Tracking supplier performance over time is an important part of our on-going strategic sourcing process. We conduct regular life-cycle evaluations for vendors, practice category spend analysis, adjust where needed, and commit to another competitive analysis as and when needed.
Over the years we have observed that in the area of strategic sourcing, procurement teams rely heavily on manually intensive efforts to identify and select suppliers. Often, the process is a scattered approach that ends up placing too much emphasis on the lowest upfront price rather than accurately determining a comprehensive landed cost that maximizes value across the procurement process.
Paragon takes a collaborative and organized approach to strategic sourcing which better aligns procurement strategies with supplier activities and yields long-term cost savings along with additional business benefits. Paragon is building capability in the area of strategic sourcing solution. To find out how we can progress your sourcing efforts and drive cost savings, please contact us.