The Ingredients for Better Buying
Behind every smart sourcing solution are six key ingredients: domain expertise; strategic sourcing capabilities; business processes; technology; supplier base; and market leverage. LogicSource brings a peerless group of assets and capabilities to help our clients buy better – transforming their current capabilities to increase procurement and pricing effectiveness across business operations.
When thinking about how your organization sources and procures goods, we consider the following six variables:
- Domain expertise– the category knowledge required to identify the correct quality, quantity and price for the goods
- Strategic sourcing capabilities– the ability to build an ecosystem of best-in-class suppliers that meet your critical criteria; and flex in order to add new categories
- Business processes– the specificity and efficiency of your processes
- Technology– the systems and tools that automate your work
- Supplier base– the robustness of production and delivery capabilities you require to support your business operations
- Market leverage– the aggregation of buying power that enables you to secure the best possible price for the volume of goods you need to purchase
In our view, the sourcing solution at every enterprise comprises these six ingredients or variables. Variables that are truly best-in-class should be properly recognized and leveraged. Some variables may require optimization or augmentation to deliver their greatest potential benefits, while other critical capabilities, tools and resources may not exist at all.
At LogicSource, we bring a peerless group of assets and capabilities to help our clients fundamentally buy better. We help them transform their current capabilities to increase the effectiveness across business operations – from marketing and merchandising right through sourcing and procurement.
Our goal is to match our asset stack to your needs. By providing best-in-class capabilities for missing variables, we can augment those that are strong but not quite substantial enough, optimize any business process that has lost its original leanness and automate wherever possible.
The process starts with a Mutual Value Assessment to determine what capabilities are in place today and identify the precise opportunities for improvement. This might include augmenting the onsite domain expertise, empowering colleagues to collaborate and work more effectively via our OneMarket platform, or improving quality and leverage through our strategic sourcing and market power.
Once we have agreed to the solution and plan, we take a pragmatic approach to implementation. We customize and deploy at your pace and with your priorities. If there are immediate short-term savings that must be achieved, we plan for that in our transition. If there are operations that must continue without disruption, we identify the right resources to ensure your business runs smoothly.
We don’t stop there. Once a solution has been implemented, we review the metrics quarterly to ensure we achieve our goals for creating ongoing commercial, operational and technical value together and plan for what’s next. Once they are buying better, clients develop a new appreciation for what’s achievable and desire to drive innovation and efficiencies further.
How well are you buying today? Would you like help identifying and understanding the ingredients and opportunities available for a total value sourcing solution?
Tags: Domain Expertise, Supplier Ecosystem, Spend Leverage, Automation, Mutual Value Assessment, Strategic Sourcing