Sourcing is a central business process for many companies, both public ones and private. Experiences and research show, that there are huge benefits to harvest, if you buy the right goods and services and are well organized around the process. We have been working at a stratetegic and tactical level with procurement and in- and outsourcing in large companies for many years, on both customer and supplier side. Our consulting on sourcing is therefore based on experience, because we have been there ourselves and we know what works!
Sourcing strategy – how do you ensure the right cut?
The right sourcing cut includes an up-to-date overview of what needs to be purchased outside the company and what needs to be handled with internal resources.
In some areas it is an easy task to clarify this, while in other areas it can be more complex, because several considerations needs to be taken, for example:
- Finances: What is best financially? Where can we reduce cost or improve efficiency?
- Innovation: Can we get new business opportunities by purchasing services from innovative business partners?
- Quality: Which alternatives ensures the best quality?
- Competences: You may often be forced to purchase necessary competences externally, but in what areas should you be self-sufficient?
- Risc: Are we too vulnerable by being dependent on a large and skilled supplier? And what about supply security?
We can assist with:
- making an overall assessment of the current sourcing landscape that can be used strategically going forward, and ensuring the right balance between internal and external services, including recommendations for implementation
- preparing decision-making basis for actual cases – whether to do it yourself or to outsource? We have a solid experience with IT-outsourcing from some of the largest IT-outsourcing deals in Denmark.
Ensuring the actual value creation is a key element in our consulting – i.e. that there is a realistic decision-making basis and benefit realization plan so the resources are used on the right projects.
Best practice organization and -management
The above best practice model represents the total amount of tasks that an organization must solve to succeed with its procurement. The model includes a catalog of recommendations – approx. 40 in total – distributed between the specified areas.
The model can be used in connection with:
- Analysis: Where is an organization in relation to best practice, and in which areas are there significant gaps?
- Proposal for new organization: How should the organization organize itself going forward, which tasks should be solved where and by whom?
- Implementation plan: At what pace should the individual activities be carried out, so the changes are happening, and the associated benefits realized.
A professional procurement organization is, among other things, characterized by:
- A governance with clear roles and responsibilities – including identification of the necessary skills
- That purchases become more efficient, have a higher quality and create savings
- A professional dialogue with the suppliers about risk, services, quality and innovation
Feel free to contact one of our sourcing specialist: Henrik Faarup, Jes Mejlby Jørgensen or Sven Kolstrup.