Demand 8% supply chain savings annually
Purchasing Staff -- Purchasing, 7/20/2004 2:00:00 AM
That’s how much you should expect from a fully implemented strategic sourcing system that covers close to 100% of the spend in your company. A new Purchasing survey shows that 71% of American corporations have begun a strategic sourcing process. Only 5% say they have no plans to start buying strategically, which is a process that begins with thorough analysis of spend across the enterprise and then organizes that spend focusing on selected suppliers with emphasis on cost reduction, quality and supply chain management.
What are the primary benefits to strategic sourcing? |
|
| Reduce costs | 33% |
| Standardization | 19% |
| Avoid reinventing the wheel with each negotiation | 14% |
| Capture intelligence about markets and suppliers | 11% |
| Reduce cycle times | 9% |
| Greater use of cross-functional teams | 9% |
| Improve compliance with supplier agreements | 4% |
| Other | 1% |
| Source: Purchasing survey | |
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