The four steps of strategic sourcing
Strategic sourcing is a procurement process that connects data collection, spend analysis, market research, negotiation, and contracting. It stops short of the actual purchase of and payment for goods and services.
Strategic sourcing can be customized to meet a customer’s specific needs, but its main goal is to leverage a single, integrated system to enhance profitability.
Strategic sourcing best practices include: digitizing documents, participating in a digital business network, and automating workflows. The process can be broken down into four steps:
Data collection and spend analysis: Spend analysis concentrates supplier data into one source, letting organizations know exactly what’s being spent where and presenting the opportunity to streamline vendors.
Supplier discovery and RFx: Sourcing becomes a strategic advantage when organizations can access supplier data through a digital business network, allowing them to request RFPs and have suppliers compete for their business.
Negotiations and contracting: Automated tools can speed workflows, simplify the digital signature process, and create an electronic repository of contracts where organizations can set renewal alerts.
Implementation and optimization: When sourcing is automated and digitized, organizations can move faster, build in feedback loops for continual optimization, and constantly evaluate suppliers to make sure they're getting the best sourcing agreements possible.
Create a seamless strategic sourcing experience from start to finish
Automated and digitized sourcing helps select the right suppliers and negotiate the best deals, faster.
Aggregate and classify every purchase
Standardize source-to-contract processes
Free people up for even more strategic work
Identify new savings opportunities
Drive materials cost savings and optimization across all spend categories
Increase speed and drive up throughput across teams
Find better suppliers and innovation partners
Easily connect buyers and suppliers to make complex processes easier
SAP Ariba Solutions for Strategic Sourcing
Strategic Sourcing Solutions
Discover qualified suppliers, speed up your sourcing cycles, and create the most competitive, best-value agreements for sustainable savings with all your sourcing needs.See strategic sourcing portfolio
SAP Ariba Spend Analysis
Organize all spend data from across different systems and identify and prioritize sourcing opportunities more easily.SAP Ariba Spend Analysis
SAP Ariba Discovery for buyers
A free buyer-supplier matching service, putting a world of high-quality suppliers at your fingertips to drive bids for your business up, and your costs down.SAP Ariba Discovery