Organizations looking to enhance their operational paradigm and boost their bottom-lines often look to Business Process Outsourcing (BPO) to help them streamline their process and business imperatives. Sourcing services or procurement services are an integral component of this value chain. What makes sourcing services a viable business proposition is its inherent benefits such as cost optimization, labor optimization, and non-disruptive focus on core competencies. In today’s competitive and volatile business environment, sourcing services continue to add value in the form of improved pricing, headcount optimization, enhanced supplier and market intelligence, and improved spend visibility. 

A sound sourcing services model encompasses the best in-class sourcing strategies, vendor selection, and sourcing management, and industry standard methodologies. The entire value chain of sourcing services can be segmented in the following manner:

Project Kick-off:This stage includes:

• Team selection
• Project charter
• Project plan
• Definition of roles and responsibilities
• Status reporting
• Project governance

Assessment of Existing Environment:This stage includes:

• Baseline assessment
• Competency assessment
• Business fitment and alignment assessment
• Risk assessment
• Change management

Development of Sourcing Strategy:This stage includes:

• Sourcing alternatives
• Sourcing principles
• Business case identification
• Action plan
• Sourcing governance

Vendor Selection:This stage includes:

• Identification of selection criteria
• Development and evaluation of RFPs
• Vendor selection
• Negotiation of contracts
• Deployment of services

Sourcing Management:This stage includes:

• Performance monitoring
• Vendor integration
• Service management
• Relationship management

Your procurement projects and initiatives are well served with the deployment of strategic sourcing services. Using a sourcing initiative, your project can achieve the following advantages:

• Better and effective risk management as non-core processes are outsourced
• Efficient management of service delivery continuity
• Efficient management of process transition
• Efficient management of technology and new process integration
• Efficient expectation management
• Efficient change management
• Effective innovation and governance management
• Proper benchmarking of projects
• Cost optimization
• Transform projects vis-à-vis economies of scale
• Continuous improvement

In a typical supply chain environment, vendor selection is a key component. In addition, you need to ascertain if the sourcing proposition is indeed risky or the amount of changes your organization needs to incorporate. Your edge lies in determining the known and unknown factors before signing up for a sourcing service. In addition, you need to align critical business components such as regulatory compliances, industry trends, market forces, sourcing models and governance, sourcing principles, culture and contractual implications, and impact on business strategies. Also, you must be prepared to address these queries:

• Does your sourcing strategy address your inherent business challenges?
• Does the strategy address the risks involved?
• Does the strategy align with your CAPEX forecast?

Global-Ability employs a proven approach to support our clients with accelerated innovation and development by deploying state-of-the-art sourcing services comprising of:

• Program development
• Realization of mission objectives
• Advanced training in latest sourcing concepts
• Advanced change management
• Advanced support
• A well trained competency pool
• Significant revenue generation