Dear procurement professionals,
We are starting to consider the best practices of determining sourcing strategies based on Purchasing chessboard of A.T.Kearney in this article
In the case of low supply and demand power, the first basic strategy involves professional steering of demand. Manage spend first of all requires detailed knowledge of who is buying what from which supplier. Based on this, one can then consider the possibility of offsetting low demand power by bundling demand, either within the company or across company boundaries. These considerations should be backed by an uncompromising analysis of whether the demand in question is actually justified. The approaches for cutting costs and adding value within this basic strategy are demand management, co-sourcing, volume bundling and commercial data mining. These approaches and their underlying methods are briefly described below.
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