Purchasing has historically been an area of underinvestment by businesses for years. It is often understaffed and the resources are pulled into day-to-day tactical activities, leaving little time to focus on strategic sourcing. In other cases, true sourcing skills and expertise do not exist within a company.
Insight Sourcing Group has performed thousands of sourcing projects for our clients. In this guide, we will explore the differences between strategic sourcing and traditional, tactical purchasing; examples of actual results; and how to get started with strategic sourcing.
Strategic sourcing blends science, art and heavy data analytics with the use of a comprehensive methodology designed to explore all viable avenues in pursuit of total cost reduction and overall quality/service parity or improvement. It differs from traditional purchasing in a myriad of ways.
The proof that these differences exist is in the end results. Across all industries — from airplane manufacturers and mutual fund companies, to apple-pie makers and entertainment companies — strategic sourcing can generate recurring cost savings of 10 to 50 percent.
How do you make such a meaningful impact on profitability? How do you begin? Learn these answers and more in this informative white paper.