“Simplicity is the ultimate sophistication.”
Leonardo da Vinci
Strategic sourcing is important to any business involved in purchasing goods, services or capital. During the acquisition process there are several factors to be considered including; what is bought where, what products do different suppliers offer and how much does it cost to provide that good or service?
Procurement is used in parallel to strategic sourcing to introduce the condition of scarcity to decision making. We use procurement by means of economic analysis through methods such as cost-benefit and cost-utility analysis. When using procurement we stress the use of multiple forms of analysis with and without the consideration of risk to gather as much information as possible for our customers.
The use of risk analysis when considering either costs or benefits introduces the idea of expected value which can give our customers at Global Supply Chain Group an advantage when making decisions. Procurement also introduces the idea of just-in-time purchasing of consumables which for many companies helps to drastically lower inventory costs.
