Sourcing and Procurement
Elevate sourcing and procurement to a strategic level with advanced lean supply chain management capabilities
Given the growing importance of supply management, companies are looking to elevate sourcing from an operational function to an integral part of their strategy. Sourcing is the first step in supply chain management and impacts all subsequent activities, making it essential to structure it strategically.
We can help you improve your sourcing system, tailoring a solution specially designed to transform the activities of procurement, purchasing, and supply.
Traditional Approach
Lean Approach
Traditional Approach
Transactional sourcing
Lean Approach
Strategic sourcing
Traditional Approach
Lowest purchase price
Lean Approach
Lowest total cost of ownership
Traditional Approach
Suppliers as providers
Lean Approach
Suppliers as business partners
Our Solutions
We bring a full range of capabilities to help you go beyond transactional sourcing by developing a system that allows you to simultaneously reduce purchasing costs and build internal competencies to sustain results.
- Reshape sourcing.
- Prioritize suppliers according to performance and core capabilities.
- Join forces to achieve savings through economies of scale.
- Establish optimized process parameters and guidelines per category.
- Ascertain target prices through different analytical methods.
- Build better negotiation arguments and leverage competition among suppliers.
- Establish commercial agreements with suitable vendors, ensuring full advantage and compliance.
- Review product features and design to reduce costs.
- Design effective strategies to reduce dependence on powerful suppliers (e.g. backward integration).
- Break away from single supplier deals and approach attractive alternatives.
- Develop strategic partnerships between buyer and supplier to create win-win relationships.
- Conduct a logistics and planning rearrangement to gain productivity, minimize inventories, and speed up the process.
- Implement joint continuous improvement and supplier development programs.
Impact
20 to 25%
Average working capital reduction
25 to 30%
Average spend reduction
20 to 40%
On-time supplies increase
Client results
Learn how to implement it in your organization
Ready to start?
Find out what are the key opportunities in your processes by conducting a diagnosis workshop
Insights
Infographic
A Pull-Flow Transformation Case
Infographic
5 Misconceptions of Supply Chain Transformations
Success Story
From traditional to demand-driven supply chains
Want to get more insights?
Every industry faces different obstacles
Kaizen Institute works directly with the client teams, with a “Hands On” and “Teaching by Doing” approach
Kaizen Institute works directly with the client teams, with a “Hands On” and “Teaching by Doing” approach