You’re busy running your business from the top. You make the important decisions and it’s you that decides where the money gets spent and why. But how do you know for sure where you’d best allocate your resources?
The last thing you want to be doing is making important business decisions based on just “instinct”. Keep reading below to find out about the smart way to make business decisions when money is involved.
What is Strategic Sourcing
Put simply, strategic sourcing is an evaluation process. A process that involves looking at all your business decisions, purchases and investments to continuously improve your business. There are 3 basic steps that are followed in the strategic sourcing process:
- Start assessing everything. Take a look at your current spending patterns; where is your money going, why and who supplies you with the product/service in return? This will be everything from employee wages to stationary supplies.
- Compile all your assessment data together and identify the most suitable suppliers. This is where your strategy starts to develop. You need to balance the books and ensure you’re getting the best services/products for the best price.
- Negotiate to get that great price and start to implement your strategy. Don’t forget to keep recording the results and your new expenditure. Strategic sourcing is all about continuous evaluation, so make time each month (or more or less frequently if you prefer) to go over this process again to improve your business further.
The Benefits of Strategic Sourcing
There are many great benefits to strategic sourcing, no matter how big or small your business is.
Firstly, the aim is to save money. The beauty of the strategic sourcing process is that you don’t have to cut back on the things you really need. It’s all about reducing costs while improving your business and purchasing the best products/services for you.
You’ll also really improve your business. The more you refine, the more streamlined and effective your business is. Time is money. Stop wasting time deciding about purchases you don’t need. Put your time, money and effort into the departments that are returning the funds you invest!
How to Do Strategic Sourcing
If you’ve got the time spare (or money to hire a strategic sourcing consultant) then that’s great! You can really get on top of spending in your business. You’ll want to start by tracking everything… and you’re going to need more than just an excel spreadsheet to do that and you’ll need storage space to keep all your data on. This could get very expensive and complex to do in-house.
www.scanmarket.com is an innovative, market-leading strategic sourcing platform. Not only do they offer you a secure cloud network to start recording and measuring business results, they also offer constant support. They are renowned for their customer satisfaction reviews!
So, if you’re serious about strategic sourcing for your business, get in touch with Scan market for strategic sourcing consultation and platform help.