Strategic Sourcing Solutions Help To Generate More Business

The Strategic Sourcing solution is where procurement identifies and creates value for their organization. This complex series of business processes includes all upstream procurement activities, from spend analysis and supplier/category management to sourcing projects and contract management.

Looking at your sourcing function more strategically ensures that you can consistently add value to the business. Adopting strategic sourcing increases operating margins, builds brand value and provide a sustainable, long-term contribution to your company’s success at least two to three times greater than the gains realized by simple purchasing automation. Paragon is the go-to solution to simplify the complexities of strategic sourcing. 

Typically, our strategic sourcing solution covers the following steps:

  • Analysis of organisational spends to understand where and how money is being spent
  • Identification of appropriate suppliers (who offers what) based on specific needs of the business
  • Supplier negotiations (around price, service levels, delivery schedules etc) to maximise the value and minimise the total cost of procurement
  • Handling the negotiation and contracting process with suppliers and managing the lifecycle of the contracts
  • Implementation of sourcing initiatives with relevant feedback loops for continuous improvement and optimisation

We deal with an institutional procurement method that persistently improves and reassesses the purchasing activities of an organization

BENEFITS

1. Increased profit

Every dollar you save on procurement directly goes into the P/L bottom line while adding dollars to the profit. Strategic sourcing systematically aims at savings from the whole supply chain, offering a competitive advantage your company.

2. Managed supply risks

Strategic sourcing needs every supplier as well as every category of spend to be analysed. All existing supplier is separately assessed for quality risk, availability risk, financial risk, and level of cooperation. Once the risks are known, an action for avoid or mitigating the risk can be taken.

3. Improved sustainability

Strategic sourcing is a continuous cycle of functions and not a one-time project or initiative. With every succeeding cycle, managers belonging to dedicated category can go deeper to identify additional opportunities to bring value to the enterprise.

4. More value out of procurement

Strategic sourcing means you are reducing the total cost of ownership to create business value. Every action taken during your strategy execution is analysed depending on – whether it provides more value at the same cost, whether it decreases operational expenditures or whether it increases operational speed

Basically, strategic sourcing is the on-going procurement process that is intended to discover, prioritize, improve, and re-evaluate sourcing activities.

At Paragon we have a higher purpose – from our own operations to what we offer clients, we are focused on one thing: business value.

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Location: Atlanta, GA, USA

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