Advanced Sourcing: Maximizing Savings
Strategic sourcing today requires a unique set of processes and technology enablers that can develop a more holistic approach to savings identification beyond traditional approaches that often remain largely manually intensive. Through higher use of advanced sourcing techniques, organizations can improve their ability to obtain in-depth and measurable supplier responses that translate directly into increased sourcing increased savings. This report analyzes the intentions, performance and strategies of over 140 companies that responded to the strategic sourcing survey and looks to define the emergence of an "advanced framework" in strategic sourcing being led by Best-in-Class organizations.
"One trend that is becoming increasingly clear is the desire to leverage sustainability as a part of strategic sourcing efforts. Looking for additional ways to improve organizational perception, 30% of survey respondents stated adopting sustainability approaches as a means to increase or maintain their brand reputation and value."
"Aberdeen research makes it clear that there is more room for eSourcing adoption. The percentage of organizations sourced through an eSourcing application averages from 33% for Best-in-Class to 24% for All Other organizations".
FAST FACTS/SALES ENABLEMENT QUOTE
"Demonstrating an average yearly identified savings of 16%, Best-in-Class organizations may be able to attribute as much as 4% of this from adoption of advanced strategic efforts."
16% is the average identified savings for a sourcing team in Best-in-Class companies
compared to 7% for all other organizations
Best-in-Class companies are 1.4 times as likely to actively use commodity councils engaged throughout sourcing process
Best-in-Class companies are twice as likely to use sourcing scenario techniques for what if bid analysis than other organizations
Best-in-Class companies are 1.8 times as likely for having an ability to enrich spend and supplier data
Best-in-Class companies are 1.2 times as likely to track sourcing cycle times