Strategic Sourcing
Strategic Sourcing 2.0 by John Brennan Innovative Analytics & Training LLC | www.innovative‐analytics.com
Executive Summary. Global sourcing executives face more challenges than ever, and the global sourcing environment will only grow more complex. The firms that survive the next century will do so because they make key investments in building the next generation of strategic sourcing capabilities. Strategic Sourcing 2.0 is about automating networks and analysis that is more rigorous. Global sourcing executives can increase their effectiveness by automating many aspects of the sourcing lifecycle and by relying on a core group of analysts who focus on creating the information reporting and analysis necessary for “enterprise awareness.” Presented below are the lifecycle and capabilities for automating and analysis. Source Discovery – Web crawling and crowdsourcing provide affordable, tailored information to constantly update the picture of risks, supplier status, new entrants and competitive intelligence. Source Evaluation – Multi‐cultural expert networks and a supplier evaluation methodology can improve the likelihood of successful supplier relationships. Source Network Management – Multi‐enterprise sourcing networks, a deliberate sensor network, and a command center can provide near real‐time insight on all aspects of the sourcing network; hosted auction services can provide dynamic pricing for source acquisitions and asset disposal. Sourcing Analytics – Near real‐time insight into subordinate sourcing organizations and programs can only be achieved with a custom reporting capability. In general, a data mart may also be required to store, manipulate and manage the information necessary for sourcing analytics. Sourcing Resilience – The capabilities and information to manage multiple issues like the acceptable levels of redundancy in the network, acceptable security, insight into business, network and supplier risks, rapid insight
Executive Summary. Global sourcing executives face more challenges than ever, and the global sourcing environment will only grow more complex. The firms that survive the next century will do so because they make key investments in building the next generation of strategic sourcing capabilities. Strategic Sourcing 2.0 is about automating networks and analysis that is more rigorous. Global sourcing executives can increase their effectiveness by automating many aspects of the sourcing lifecycle and by relying on a core group of analysts who focus on creating the information reporting and analysis necessary for “enterprise awareness.” Presented below are the lifecycle and capabilities for automating and analysis. Source Discovery – Web crawling and crowdsourcing provide affordable, tailored information to constantly update the picture of risks, supplier status, new entrants and competitive intelligence. Source Evaluation – Multi‐cultural expert networks and a supplier evaluation methodology can improve the likelihood of successful supplier relationships. Source Network Management – Multi‐enterprise sourcing networks, a deliberate sensor network, and a command center can provide near real‐time insight on all aspects of the sourcing network; hosted auction services can provide dynamic pricing for source acquisitions and asset disposal. Sourcing Analytics – Near real‐time insight into subordinate sourcing organizations and programs can only be achieved with a custom reporting capability. In general, a data mart may also be required to store, manipulate and manage the information necessary for sourcing analytics. Sourcing Resilience – The capabilities and information to manage multiple issues like the acceptable levels of redundancy in the network, acceptable security, insight into business, network and supplier risks, rapid insight