Culture of strategic sourcing
Sourcing and Procurement Consulting
Sourcing done well gives the entire supply chain a stronger foundation, moving decisions beyond price and building partnerships that hold under pressure.
Sourcing is the first step in supply chain management, and it determines the performance of everything that follows. However, in most organizations, it remains a transactional function, with decisions defaulting to cost and supplier relationships lacking depth.
Our sourcing and procurement consulting applies lean methodologies to strengthen supplier partnerships, align sourcing decisions with business strategy, and give the supply chain the structure it needs to perform consistently at scale.
When that structure holds, procurement stops being a bottleneck and becomes a strategic capability, the foundation of a culture of strategic sourcing where purchasing decisions and supply chain performance move in the same direction.
Traditional Approach
Lean Approach
Traditional Approach
Transactional sourcing
Lean Approach
Strategic sourcing
Traditional Approach
Lowest purchase price
Lean Approach
Lowest total cost of ownership
Traditional Approach
Suppliers as providers
Lean Approach
Suppliers as business partners
Our Solutions
We bring a full range of capabilities to help you go beyond transactional sourcing by developing a system that allows you to simultaneously reduce purchasing costs and build internal competencies to sustain results.
- Reshape sourcing.
- Prioritize suppliers according to performance and core capabilities.
- Join forces to achieve savings through economies of scale.
- Establish optimized process parameters and guidelines per category.
- Ascertain target prices through different analytical methods.
- Build better negotiation arguments and leverage competition among suppliers.
- Establish commercial agreements with suitable vendors, ensuring full advantage and compliance.
- Review product features and design to reduce costs.
- Design effective strategies to reduce dependence on powerful suppliers (e.g. backward integration).
- Break away from single supplier deals and approach attractive alternatives.
- Develop strategic partnerships between buyer and supplier to create win-win relationships.
- Conduct a logistics and planning rearrangement to gain productivity, minimize inventories, and speed up the process.
- Implement joint continuous improvement and supplier development programs.
Talk to an Expert
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Impact
20 to 25%
Average working capital reduction
25 to 30%
Average spend reduction
20 to 40%
On-time supplies increase
Client results
Learn how to implement it in your organization
Insights
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Every industry faces different obstacles
Kaizen Institute works directly with the client teams, with a “Hands On” and “Learning by Doing” approach
Kaizen Institute works directly with the client teams, with a “Hands On” and “Learning by Doing” approach