Procurement Strategy

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Procurement Strategy

Procurement can account for up to 70% of your costs and have a direct impact on your income statement. On a broader scale, procurement can also impact areas such as innovation, sustainability, and risk, particularly in relation to the supply base. With procurement affecting both your top and bottom line, it is of importance to implement procurement strategies and approaches that can maximize the direct value to your company and customers. We help your company develop a world-class procurement strategy that builds procurement excellence for a sustainable future. We recognize the importance of creating an alignment of procurement strategies with corporate-level business strategies and with the expertise of our consultants we are able to translate your top-level business objectives into effective procurement strategies to ensure cross-functional alignment across all organizational levels. We are a boutique strategy consultancy firm committed to sourcing & procurement value creation. Sourcing Champions collaborate closely with your team to augment procurement knowledge and build enterprise-wide value-creating procurement strategies.

Strategy is a company-unique roadmap to delivering customer value. We offer a tailored strategy-creation program to strengthen your company-specific capabilities and develop high-impact procurement strategies based on deep supply market insights. Together we drive bottom line results and top line growth.

Adressing Global Challenges Through Procurement Strategy

In the ever-changing competitive environment, procurement is continuously faced with complex challenges such as inflation, digitalization, sustainability, and CO2 reduction, risk mitigation, deglobalization, and many more. The decreasing ability of traditional procurement to attain necessary value contribution is creating the need for innovation and strategic transformation. At Sourcing Champions, we view procurement strategy as a source of competitive advantage in this challenging environment.

In order to tackle the complex task of procurement strategy creation we employ the 15M Architecture approach. Developed by professor Dr. Gerhard Hess, 15M Architecture is a holistic, modular approach to formulation and implementation of procurement strategies. We combine our practical expertise with 15M structural approach to deliver top-level strategic roadmap for your procurement function.

Tackling strategy creation through a systematic approach allows us to revise the existing strategic capabilities of your procurement function and direct your procurement strategy toward the future. This way of strategy formulation allows us to integrate smart tools and digital solutions into your strategic alignment and enables your procurement function to drive quality, speed, innovation and sustainability of your organization alongside to the strategic cost optimization. This is how we transform your procurement into a competitive advantage and build the foundation for a sustainable future.

“We develop a world-class holistic procurement strategy that builds procurement excellence for a sustainable future.”

Our Approach to Procurement Strategy

Formulating and implementing a procurement strategy that aligns your organization’s capabilities and corporate business objectives is a challenging yet greatly rewarding exercise. Our procurement strategy program helps define a tailored procurement strategy aligned with your corporate strategic objectives. Such procurement strategy will leverage your category spend, supplier relationships, and internal organizational capabilities.

We tackle procurement strategy formulation through the Procurement Framework Strategy approach developed by professor Dr. Gerhard Hess. This approach entails four focal steps:

  1. Definition of Value Contribution Targets
  2. Formulation of Procurement Guidelines
  3. Execution of strategic analyses
  4. Formulation of Strategic Direction

This method allows us to clarify the objectives of the management and other vital stakeholders, understand the current state of the procurement function as well as the market environment, and concretize the procurement strategy and prepare it for implementation. Our breadth of procurement expertise, proprietary tools, and experience make us uniquely suited to advise clients across different industries on formulation and execution of value-maximizing procurement strategies.

Our consultants can act as an external coach, supporting and advising your procurement function, or bring the expertise by directly serving as a member in your team. Sourcing Champions’ experience in procurement strategy development allows us to kick-start ideas and introduce your leadership team to the latest procurement best practices. Through our collaboration, we are driven to deliver a successful strategy statement containing a value-focused strategic direction for your organization.

Procurement Strategy Development in the Digital Era

Similarly to other business areas, the practice of sourcing and procurement has been undergoing a transformation due to rapid technological developments. While stakeholder relationship management remains at the forefront of procurement, it is becoming increasingly important to establish a process structure that delivers timely and cost-efficient results by employing smart digital solutions. Together we create tailor-made procurement strategies based on Value Contribution Targets specific to your company. Based on these value-delivery objectives we propose a software-implementation plan in order to integrate best-of-breed software solutions into your sourcing & procurement function. Sourcing Champions have partnered with next-generation digital solution providers in order to maximize value-creation and turn your organization future-proof. Our digital partners bring our procurement strategy program to the next level and enable us to transform your Procurement Strategy and your Category Strategies into the Digital Age.

Procurement strategy is where the journey to excellence begins, however, digital solutions is what sustains the success. What differentiates Sourcing Champions as a procurement consultancy is our efforts to not only create a strategic roadmap but also help implement it while integrating state-of-the-art technologies into your procurement function. Find out how your procurement can drive sustainable change for the future while delivering quick results at minimal costs.