Quote:
Originally Posted by bernievn
Is there a standard process for strategic sourcing that can be applied in any organization or should each define its own? For example: Some companies use the following sequence:
1. Identify the business drivers / strategic objectives
2. Analyse the spend and categorise into commodity categories
3. Create cross functional teams based on organisational / commodity requirements
4. Investigate the current situation / build a fact base
5. Identify and quantify opportunities
6. Finalise commodity strategies and obtain approval
7. Implement proposed strategy...
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I believe the process you cite is common to most companies, based on common sense applicable, and the fact that there is little difference at this level of viewing, between the approach for different categories. Where the real differences become significant is in the next level down, as soon as the commodity categories are listed (mainly strategic implications, the effect of unknown implications on the options being reviewed, in particular, in my experience which relates mainly to low cost country procurement).
Other areas include how companies look at the total cost of change and of ownership, and tangible/intangible costs associated with this. This tends to be the area where most lively discussion and alternative views is/are created.