Towards Strategic Sourcing

Our customers often face the problem of being tasked with the procurement (preferably by tomorrow) of a service or product. These ad hoc -demands can be, especially when cumulated, costly in both terms of money and time. And they do nothing to support a company´s long-term business goals. Also, procurement professionals are nowadays faced with a multitude of challenges. They have to have a versatile skill set and be able to work across multi-tier logistics and a scattered supplier base.

Transforming sourcing to a strategic tool is no small matter and nor is it easily done, either – but definitely worth the effort. Considering that the costs connected to procurement amount to up to two thirds of an organization’s overall expenses it is vital to plan them strategically and cost-effectively. Obviously short-term, more “need meets action” -type of sourcing known as tactical sourcing has its place in a company´s sourcing tool kit as well, or a mix of the two. Cloudia´s services have been designed to work for both methods and suit any company’s workflow.

Creating an effective procurement process creates a clear competitive edge. Companies should strive to switch from passive, reactive problem solving to strategic sourcing.  A well-functioning sourcing function positively affects the company´s and the whole supply chain´s ability to briskly answer market demands.

PROCUREMENT SHOULD LEAN HEAVILY ON PREDICTABILITY AND PROACTIVITY

Tune Your Mindset to Strategic Sourcing

Almost every large procurement organization claims to have built a strategic sourcing function – but have they really? What actually makes an organization strategic? A common distinction between tactical and strategic sourcing is that tactical sourcing reacts to short-term business needs, while strategic sourcing systematically aligns sourcing practices with long-term business objectives. Strategic sourcing relies on a holistic view of the business along with processes that promote long term thinking. Strategic sourcing also means developing and planning actions, developing the buyer-supplier-relationship, prognoses and careful evaluation and choosing of partners.

The Cloudia Solution

Sourcing works the hardest for a company´s goals when it´s supported by long-term business plans and is a thought-out process. The planning phase of every procurement is where the biggest savings can be achieved. You´ll never have to make rash decisions or be poorly prepared for a procurement process. Pre-emptive planning helps even in those last minute orders you didn´t forecast.

Cloudia´s services help you focus all your sourcing activities to one, easily-accessible place. Answer all your sourcing related issues with one solution! One solution to suit your needs will make your procurement work easier, reduce the number of errors and creates an automated work flow where appropriate. We offer our clients different solutions to help them cut down the need for manual work and instead concentrate on supplier control and cooperation as well as handling the lifecycle of procurement and contracts. In short, we help make your sourcing truly strategic:

• • Cloudia Planning minimizes the risks involved in procurement, minimizes overlaps and optimizes your resources.
  • Cloudia Sourcing helps in the planning, control, guiding and follow-up of all your procurement processes.
  • Cloudia Contract digitalizes the whole buying process and offers a convenient place to store and handle documents from purchase orders to customer claims.

Don’t know where to begin? Let us help you! Order a complimentary process evaluation.

You might also find this interesting: From tactical to strategic sourcing: going beyond daily battles to long-term victory