Procurement excellence help businesses improve cost efficiency and drive better business values. Every organization aims to ensure the timely supply of goods and services in line with business goals at reduced risk involved within the supply chain. Co-operation from all departments is needed throughout the organization to source and regulate external resources such as identifying the need for goods or services, evaluating and choosing strong suppliers, negotiating prices and creating buying contracts to get the best.

Identifying & exploring Strategic procurement process gets more important as it delivers insights to inform the supply chain management system about:

• Choosing strong suppliers that best meet the business targets
• Procuring higher quality goods
• Building secured relationships with vendors
• Proper alignments with suppliers on areas such as R&D
• Managing/reducing supply chain risk, by looking for alternative suppliers
• Narrowing the vendor base to focus better on key relationships

Inspecting these Pillars of Strategic Sourcing make business to drive higher savings

1. 1.       Need Analysis

It’s better to do commodity need analysis as per the requirements because wrong flukes may lead businesses face challenges when attempting to streamline their international procurement activities.

1. 2.       Spend Analysis

Enhance visibility into expenditure areas to drive higher savings.

1. 3.       Market Analysis

Understand your place in the market and use it to grow procurement strategies

1. 4.       Strategic Sourcing

To meet current and future business requirements, an organization should ensure about supply base / suppliers capability and capacity

1. 5.       Supplier Selection & Contract Creation

Identifying and Negotiating with chosen strong suppliers and creating contracts to nurture those relationships

Without a strategic approach to procurement, the company may lack clarity over the company’s purchasing activities, which may in turn obstruct negotiations with good suppliers. The process of sourcing and selecting suppliers may also be overly time-consuming and inefficient in absence of a more strategic approach.