Strategic Sourcing Process

Negotiate and
Select Sourcing Supplier List Choose Sourcing Integrate Benchmark
Category Definition Select
Strategy Creation Method Suppliers Market
1 2 3 4 5 Suppliers 6 7

Purpose Understand internal Create go to Identify all viable Decide most Conduct aggressive Operationalize Monitor market and
spend and external market approach suppliers appropriate negotiations and supplier agreements supplier performance
market execution strategy select suppliers

Tasks Identify and understand Assess current Collect detailed Select RFP, Internet Issue RFP Identify integration Develop processes to
current usage sourcing practices supplier information auction and/or face- Analyze RFP responses issues continuously
Volumes Strategically Generate potential to-face negotiation Best price evaluation Consider benchmark supplier
Locations and segment the supplier master list Develop RFP Non-price evaluation organizational performance
business units category Create and issue RFI execution strategy Develop negotiations implications and Develop processes to
Suppliers Business impact Develop qualification Develop RFP strategy required changes monitor
Pricing/Baseline Supply market criteria template Develop team Create new market/industry
Specifications complexity Screen potential Develop RFP objectives and roles processes and conditions
Forecasts Analyze alternative supplier list against evaluation criteria Identify supplier procedures
Supplier sourcing strategies criteria and weighting objectives and key Create transition/
performance Select appropriate Develop negotiation messaging implementation plan
Conduct industry sourcing approaches strategy Identify negotiating Monitor results
analysis and techniques levers
Competitive situation Conduct
Suppliers auction/negotiations
Market segmentation Recommend suppliers

Tools Spend Data Sourcing strategy / Contract List Evaluation templates e-RFP Implementation Spend Management
Pre-event schedule agreement RFI RFP templates Internet Negotiations summary Sheet
questionnaire Supplier / MWBE Strategy tips (auction)
database database
Deliverables Category deep dive Category sourcing RFI analysis Baseline summary RFP analysis and total Implementation plan Ongoing category
review strategy summary List of suppliers template cost model Savings review process
Internal spend Internal analysis segmented by Baseline spend Supplier scorecards measurement and Supplier performance
analysis Industry capabilities assumptions Negotiation strategy tracking process report card
Industry overview dynamics Supplier qualification Savings estimate templates Conversion timeline
and market Constraints criteria calculation Auction war room Supplier validation
dynamics Category Supplier short list Savings strategy/team roles Supplier letter of
positioning for RFP realization Post negotiation agreement
matrix schedule analysis Internal and
RFP template Supplier external
recommendations communications
Supplier terms and strategy
conditions Category close-out
template