{"id":2811,"date":"2020-09-10T22:18:14","date_gmt":"2020-09-10T21:18:14","guid":{"rendered":"http:\/\/localhost\/sfresource\/?p=2811"},"modified":"2022-11-02T15:38:22","modified_gmt":"2022-11-02T15:38:22","slug":"applying-the-principles-of-strategic-sourcing-to-modern-procurement","status":"publish","type":"post","link":"https:\/\/intelligence.supplyframe.com\/ko\/applying-the-principles-of-strategic-sourcing-to-modern-procurement\/","title":{"rendered":"Applying The Principles of Strategic Sourcing to Modern Procurement"},"content":{"rendered":"

The events of 2020 have shaken the very pillars of global supply chain and manufacturing organizations. The effects have been widespread and costly, but they have also revealed the need for us to revisit and rethink our approach to sourcing and procurement. While strategic sourcing has been a known method since the first 8-step model was introduced in 1994, the practice is more relevant than ever in our modern era.<\/p>\n

It\u2019s time to go back to basics and look at how we can leverage this proven approach in supply chains going forward.<\/p>\n

Strategic Sourcing Vs Traditional Procurement<\/h3>\n

When we use the term \u201cstrategic sourcing\u201d we\u2019re referring to a process that comes about as a result of a specific goal or necessity. As part of this process, we must evaluate our opportunities and supplier relationships, assess both value and relevance for the business and supply chain in the long-term, and finally create a plan of action for commodities or supply networks.<\/p>\n

Given this, let\u2019s take a look at traditional procurement first. This approach is highly focused on seeking out the lowest cost among suppliers and managing the execution process from PO, to invoice, to payment.<\/p>\n

Strategic sourcing pulls the scope out, instead opting to seek out long-term relationships with suppliers that provide quality, value, collaboration, and flexibility in an ever-changing supply chain. It\u2019s ultimately a limited approach versus a holistic one.<\/p>\n

After all, the purchase price is the tip of the proverbial iceberg. Factors like risk, guidelines, processes, drivers of demand, inventory planning, and technical capabilities are all factors that directly affect the ability to complete the procurement process.<\/p>\n

This applies to both direct materials spend and indirect spend as well. While the former is focused on purchasing all the required materials, components, and services needed to produce a product, the latter focuses on expenses required to operate the business. Both, of course, can benefit from a strategic approach, but the indirect spend is primarily focused on cost-efficient collaboration with suppliers.<\/p>\n

Focusing on direct materials spend, strategic sourcing allows us to define some traditional objectives that set the stage for how the organization stands to benefit:<\/p>\n