Moving from purchasing to strategic sourcing

1. Sourcing & Optimising Strategies Managing Strategic Supplier Relationship & Collaboration Anand Subramaniam

4. Drivers for Change

6. Chief Purchasing Officer / Buyers

8. Supplier Base Optimisation

13. Strategic Sourcing Process

14. Evolution of Sourcing Cross-functional teams Global Commodity Teams, Center-led or centralised Decentralised Buyers People Technology enablement across all strategic sourcing processes Auctions, eSourcing, Basic optimisation Spreadsheets Technology Global; Highly collaborative across the enterprise and visible at executive levels Multi-regional, Some collaboration with related functions Local; Many suppliers Reach Balancing Total System Cost; Maximising shareholder value; Enabling product innovation Supplier rationalisation, Spend consolidation, Cycle-time reduction, Standardisation Price, Transaction management, Compliance Focus Enablement Project Transaction Paradigm Adapted from FreeMarkets Supply Evolution Traditional Purchasing Strategic Sourcing Global Supply Management

15. Strategic Sourcing Process Analyse Spend Identify Requirements Analyse Market Implement Strategy Manage Negotiations Award & Contract Develop Strategy Traditional Procurement Strategic Sourcing Supplier Evaluation and Selection Supplier Management Supplier Development

23. Supplier Financial Analysis

28. Risk Management

29. Risk Minimisation

30. Supplier Performance

31. Improvement Action Plan

32. Supplier Audit Check Sheet