The Future of Strategic Sourcing

As we head into the 2021, it is important to recognize the transformative shift within the Procurement function over the past decade. Previously, a typical purchasing function is limited to a buy-sell transaction or focusing on cost savings or supply continuity. Today, strategic sourcing is a proven approach to establishing increased competition, cost reduction, creating relationships with suppliers, thorough understanding of market / internal company requirements, reviewing spend analytics, category management, and much more.

Have we observed a big shift in the way strategic sourcing is executed? Many business leaders are eager to improve processing, reduce costs, and optimize competitive advantages. To do so, they must be able to reshape their supplier relationships, align on strategies to revamp the desired future state, and recognize the competitive advantages strategic sourcing has shaped across decades.

Providing Value-add Services - Beyond Savings

Today, procurement professionals are expected to deliver services beyond cost reduction. The demand of strategic sourcing has shifted to offer value-add capabilities, such as:

• Data Analysis:
• Collection and in-depth analysis of essential data to consider the best-in-class go-forward strategy
• Supplier Management and Development:
• Investing and sustaining supplier relationships
• Identify opportunities to create total cost savings above and beyond piece price reduction through leveraging supplier relationship.
• Leveraging market intelligence to improve efficiencies
• Utilizing competition to negotiate and reduce overall costs
• Make realistic, impactful recommendations that address constant organizational advancements and supplier relationships

For decades, driving savings has always been a primary goal within procurement. Note, savings is typically recognized as the key highlight and how procurement is known, understood, and valued across organizations. However, the current state of procurement is shifting and being tasked with a deeper, more meaningful way procurement is driven, thriving beyond hard dollar savings, cost containment, or cost avoidance.

Within the procurement workspace, talent has dramatically increased over the years. The procurement function has greater expectations - competition within the field has risen higher than ever before. Procurement professionals are being tasked with increasing the speed of project delivery, faster innovation, accommodating tighter budgets, and addressing competition within the marketplace.

Digital Transformation

Digital Transformation is changing the procurement function. Many procurement companies have been tasked with agility, speed, and scalability to address the impacts of procurement disruptors. The key to success is capitalizing on the undertaking of digital transformation and using this as an opportunity for growth, competitiveness, and efficiency. 

By 2021, the world of digital transformation has required procurement professionals to think creatively, digitally, and become data masters. We must accept that change is constant, and collaboration between procurement and data science teams will always be meaningful and relevant. According to GEP, leading companies are pursuing “digital-first” strategies. 

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Corcentric, and its resources, has been extremely proactive with advancing technologies, improving data analytics tools, and staying in the-know for software developments and procurement transformation. We offer AP Automation, procurement, and billing solutions to help companies optimize how they purchase, pay, and get paid. A key focus is delivering services inclusive of additional value-add capabilities, such as building sustaining supplier relationships, applying relevant market intelligence, benchmarking analytics, consulting, and more.

For more information on how we offer top of the line procurement and consulting services (beyond hard-dollar savings) and ways we keep up with digital transformation – please email us at sales@corcentric.com.

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