Strategic sourcing

Strategic sourcing

Package deals for your commodities

Industrial companies can save up to 50% on purchasing their commodities, such as sheet metal work, electronics, pneumatic equipment and cables, by arranging package deals with a smaller number of suppliers. This can be done without compromising reliability, product quality or guarantee of supply.

Strategic sourcing

For a typical customer, strategic sourcing of commodities can help achieve cost savings of 10% to 50% through the following steps:

  • analysis of historical purchase data for thousands of articles
  • expanding technical specifications to obtain standard product descriptions
  • setting up a commodities catalogue of combined packages containing hundreds of articles
  • benchmarking their catalogue with market prices, through auctions or quotations
  • doing a background check on potential new suppliers (financial analysis, reliability and quality, reference checks with reference visits if necessary, quality control and sampling)

Competitive benchmark

The result of a strategic sourcing analysis is always positive. Either it will assure you that your current suppliers are offering very competitive conditions, or you will onboard a small number of new suppliers who can deliver your standard commodities at a lower price and other improved conditions.

Fast return on investment

We perform strategic sourcing on a project basis, with a lead time of four weeks to three months, depending on the completeness of your product specifications and the size of your catalogue. The typical return on investment is less than a year. A likely follow-up is the complete outsourcing of your non-strategic procurement based on the so-called one-vendor model.