Strategic Sourcing

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.