Recent research by The Hackett Group® has found that one of the key differentiators between top-performing procurement organizations and typical performance is their degree and manner of strategic sourcing usage. World-class organizations – those that benchmarking studies place in the top quartile of organizations in both efficiency and effectiveness – leverage strategic sourcing to a substantially greater degree than do their average-performing counterparts. For example, world-class procurement organizations consolidate their purchases among 78% fewer suppliers than typical companies. And world-class organizations use a documented strategic sourcing strategy for their procurement spend 56% more often than their average-performing peers.
Are you fully leveraging strategic sourcing? The Hackett Group can help
As a leading global strategy consulting and operations consulting firm, The Hackett Group has the experience and expertise to help you leverage strategic sourcing to gain measurable improvements in your procurement operation’s efficiency and effectiveness. Our veteran procurement and supply chain management consultants deliver fact-based advice on all dimensions of strategic sourcing including:
- Benchmarking of your current sourcing operations and comparison to world-class operations to identify key performance gaps.
- Supply market analysis.
- Sourcing strategy development, including alignment with business objectives of spend owners.
- Global organization design, including assessment of the potential for offshoring data-intensive strategic sourcing sub-processes such as cost modeling and market intelligence gathering.
- IT strategy, including the potential for strategic sourcing support technologies such as automated contract management and bid optimization.
- Selection of and negotiation with suppliers.
- Performance tracking and continuous optimization.
- Process transformation and change management.
Like all of The Hackett Group’s advisory and consulting services, our strategic sourcing solutions are informed by our proprietary benchmarking and best practices database, built out through our more than 26,000 benchmarking engagements with nearly 9,100 major companies including 97% of the Dow Jones Industrials, 89% of the Fortune 100, 70% of the DAX 40 and 55% of the FTSE 100. When you work with The Hackett Group, you know that you’re getting advice that’s rooted in proven, measurable results.
To learn more about The Hackett Group’s strategic sourcing advisory and consulting services, as well as our solutions for other business needs such as enterprise performance management, HR metrics application, business performance management, SAP implementation and more, contact us.