Group items tagged

Companies across industries are adjusting to volatile market conditions and reduced demand, leading executives to focus on cost reduction. The procurement and supply chain function serves as a key lever for improved cost performance, and many companies have launched initiatives focused on cost optimization.

Look Beyond Strategic Sourcing Companies often focus their efforts simply on strategic sourcing, but strategic sourcing alone cannot drive sustainable benefits. A limited focus on strategic sourcing may initially reduce costs for the buyer, but it may not ensure long-term realization of those benefits. More importantly, if executed in a manner where cost is the only focus, strategic sourcing can result in damage to a supplier relationship that may become critical in times of supply constraints. Instead, the focus should be on enhancing long-term value obtained from suppliers rather than on simply finding the lowest price.