Strategic Sourcing Company
Business leaders have come to realize that the supply chain is the backbone of any business. It is also considered as an enabler for your business strategy. Dragon Sourcing helps organizations leverage their supply chain efforts as a strategic capability of enhancing operational excellence.
Our sourcing and procurement operations entail all activities that are core to delivering value for our client. These days, strategic sourcing requires unique tools and skills to process the living and ever increasing data stream. With the application of more advanced sourcing methods, companies have improved their capability to obtain measurable and thorough supplier performance that is directly associated with increased cost savings.
As a discipline, strategic sourcing demonstrates the need for evolving in our dynamic global environment. The ability to link effective techniques to technology is vital. Having a holistic viewpoint across the enterprise and the sourcing methodologies is crucial to drive down cost and grow vendor/customer relationships.
Strategic sourcing companies deal with an institutional procurement method that persistently improves and reassesses the purchasing activities of an organization. In the services industry, a service solution, sometimes known as a strategic partnership is referred to as strategic sourcing. It is especially customized to meet individual needs of the client. It is often regarded as one supply chain management component in a production environment. Basically, strategic sourcing is the ongoing procurement process that is intended to discover, prioritize, improve, and re-evaluate sourcing activities.
Here is a list of the best practices that we follow to help best-in-class companies achieve considerable cost savings along with other sourcing objectives.
Strategic Sourcing Cycle of Improvement
Strategic sourcing is a continuous, well-planned procedure of proactive actions, where global sourcing takes a leading role in adding value to the organization after satisfying business requirements. Actively handling your supply chain means teaming up with suppliers and internal stakeholders, critically scrutinizing company spend and managing supplier risks.
Procurement has traditionally depended on reactive sourcing – making a response to requisitions or other business needs as they come up. As procurement is more proactively managed within strategic sourcing companies, reactive sourcing turns out to be tactical. Strategic sourcing includes creating a strategy to anticipate requirements and plan accordingly as those requirements arise.
Benefits of strategic sourcing
Every dollar the enterprise saves in procurement directly goes into the P/L bottom line while adding dollars to the profit. Tactical sourcing systematically aims at savings from the whole supply chain, offering a competitive advantage to the company.
Managed supply risks
Strategic sourcing needs every supplier as well as every category of spend to be analyzed. All existing supplier is separately assessed for quality risk, availability risk, financial risk, and level of cooperation. Once the risks are known, an action for avoid or mitigating the risk can be taken.
Strategic sourcing is a continuous cycle of functions and not a one-time project or initiative. Managers belonging to dedicated category within the team keep an eye on supplier performance and category. With every succeeding cycle, they can go deeper to identify additional opportunities to bring value to the enterprise.
More value out of procurement
Strategic sourcing means you are solely looking to reduce business costs. Every action taken during your strategy execution is analyzed depending on the following criteria:
- Whether it provides more value at the same cost
- Whether it decreases operational expenditures
- Whether it increases operational speed
Successful implementation of strategic sourcing
Every company looking to have control over its supply chain should take help of our strategic sourcing principles.
Implementing the best practices of any of the leading strategic sourcing companies is sure to provide extra boost to the organization’s profit margins. Find out whether your enterprise has grown to the point where you should hire a supply chain manager or procurement manager to get your company ready to start applying strategic sourcing.
The objective is to look beyond delivery time and daily price challenges. Strategic sourcing is a complex process that helps you understand the association between your organization and your suppliers. Our strategic sourcing professionals at Dragon Sourcing help clients source materials and services to increase cost savings and enhance efficiency and quality. In today’s global economy, organizations encounter growing pressure to decrease or manage costs, improve or maintain quality, and consolidate their supply chains with those of their customers and suppliers.
While there are many advantages of strategic sourcing, the key objective is lessening the total ownership cost or total landed expenditure for materials and services while increasing or maintaining the entire value delivered from the supply base. It is about understanding the suppliers, industry as well as market scenario affecting purchases of an enterprise. Strategic sourcing transitions this knowledge into favorable advantage.
Strategic Sourcing process of Dragon Sourcing is an information-based methodology for engineering and understanding the most cost-efficient sourcing and procurement services, while meeting or exceeding the company’s functional requirements. Our process leads to a detailed understanding of a company’s expenses, quantification and identification of cost-drivers, and a structured and collaborative process of selecting and negotiating optimum tactical and strategic supplier relationships.
Our strategic sourcing specialists help organizations create and implement tactical decisions around sourcing initiatives, while handling the underlying hazards of supply interruption. Dragon Sourcing continues to assist companies across a range of industries to execute and carry best practices in strategic sourcing, thereby achieving remarkably higher cost savings and value offered from their supply base.
Our core service offerings include:
- Strategic Sourcing
- Category Management
- Global Sourcing
- Spend & Procurement Data Analysis
- Spend & Procurement Capability & Process Improvement
- Logistics Optimization & Sourcing Transportation
Most strategic Sourcing companies operate from insight to action, supporting clients from sourcing strategy through implementation and continuous service delivery optimization in a flexible yet robust way. We help our clients achieve their desired results by challenging all parties – the appropriate service providers and the outsourcing buyer – to come up with an exceptional solution to the existing business challenge.
We apply the same accuracy to both external and internal alternative delivery options. Sometimes, the best value to outsourcing is a fast “no”; this allows the buyers to deploy their minimum resources using alternative delivery models like global in-house centers, shared services, or process enhancements. Our strategic sourcing method is focused on solutions-oriented suppliers who deliver quality goods and services. We follow a specific approach to leverage direct and indirect spending through purchasing execution and cross-business collaboration.
Dragon Sourcing has a team of dedicated strategic sourcing consultants who assist clients to sustain their desired outcomes for the long-term, while accommodating the requirements of the present constraints. Please contact us to help your business build integrated supply chain planning methods ranging from the long-term sales and operations planning, strategic planning, to the everyday operational planning.