Sophisticated companies understand how to work with suppliers to capture great value. At ChesOps, we also know that companies need to walk before they run, and that there are a number of building blocks that need to be in place to set the foundation for a Strategic Sourcing organization. Many questions need to be considered: What are the organization's capabilities? metrics? Have they identified critical risks? How are they using technology? How is the team attacking / managing critical categories? Are they taking a strategic or a tactical approach to capture value? The graphic below shows how we think about the many components of a solid Strategic Sourcing capability
Typical Engagement
The first step in starting a Category Management program is to understand a company's spend profile. By building out a "spend cube" (how much is spent, with what company and on what), ChesOps can quickly prioritize high value categories, and lay out a plan of attack that maximizes near-term value.
Once the categories are identified, ChesOps can help guide your team through a proven Strategic Sourcing methodology to generate great results - cost savings, reliability/quality improvement, etc. We have experience with all of the categories, levers and tools below. These methodologies can generate step change (up to 40% savings) and ongoing improvements.