Procurement is playing a more strategic role than ever before, helping companies achieve and sustain a competitive advantage by keeping costs low, providing goods and services efficiently and effectively, and drawing on the innovation and quality insights of suppliers.
The overall goals of procurement and sourcing is to achieve large and sustainable cost reductions, long-term supply stability and minimization of supply risk. The strategies to achieve such goals can be as wide as rationalizing supplier base, leveraging spending across departments, business units and geographical regions, reconfiguring supply specifications, and / or developing strategic partnerships / alliances with selected suppliers.
Though many times the terms sourcing and procurement are used interchangeably, they actually represent two fundamentally different concepts. Sourcing refers to the value added process of selecting suppliers and the respective cooperation scheme and it must be supported by advanced analytics & market intelligence, supplier performance information and a concrete and well-developed strategy. On the other hand, procurement refers to the transactional of the relationship and should be streamlined as much as possible in order to achieve efficiency.
UNTRASOL can provide you with an integrated approach incorporating spend analysis, strategic sourcing, supplier management as well as procurement optimization.
Well-designed sourcing initiatives can generate substantial savings—up to 15 to 20 percent of a company’s purchasing costs. We work closely with our clients to deliver and sustain those cost improvements, improve cross-functional collaboration, develop new capabilities and more streamlined processes, and build stronger, more productive supplier relationships.