Identifying, strategizing, negotiating and implementing purchase cost reductions for key goods and services.
Having the ability to know which questions to ask and what places to look in negotiating with vendors at all levels of their organization; realizing that the more you know about a vendor’s cost structure, the stronger your negotiating position.
Recognizing that reducing end use costs is an ongoing process rather than a singular event; incorporating cost reduction targets into supply agreements.
Categorizing expenditures into the appropriate category (eg. Strategic,Transactional) and developing the appropriate strategic sourcing strategy for each specific category.
Providing ‘benchmarking’ knowledge that can only be obtained through an external resource; this helps level the playing field between vendors and purchasers.
Ensuring a proper organizational structure is in place to allow both ‘strategic sourcing’ and ‘transactional purchasing’ activities to function effectively.
Having the ability to leverage purchases of common categories with other past or current non-competing clients, thus creating additional value for all.