Spend Optimization Process

Beginning with the Opportunity Assessment, the Spend Optimization Process allows your organization to:

    • Highlight Opportunities
    • Outline Potential Workstreams
    • Provide Foundation for Category-Based Strategic Sourcing

Components of the Spend Optimization Process:

Assess the Opportunity

  • Spend Analysis
  • Contract Inventory
  • Organizational Fit
  • Stakeholder Interviews
  • Process & System Capabilities
  • Category Markets

Define the Project

  • Opportunity Analysis
  • Team Creation
  • Scope Determination
  • Stakeholder Identification & Mapping
  • Business Requirements Definition
  • Rank Needs
  • ID “Quick Wins”

Do the Research

  • Specification Review & Challenge
  • Procurement History
  • Projected Requirements
  • Market Research
  • “Should Cost” Modeling
  • Technology Issues
  • Marketplace Strengths
  • Attractiveness to Suppliers

Create The Sourcing Strategy

  • Option Generation, Evaluation, Selection
  • Risk Analysis
  • SWOT Mapping
  • Strategic Source Plan
  • Benefit Metrics

Source the Requirements

  • Implementation Plan
  • Executive Sign-off
  • Project Management
  • Change Management
  • Tendering the Requirements
  • Reverse Auctions
  • Negotiations
  • Supplier Selection
  • Contract Creation & Award

Learn & Improve

  • Supplier Relationship Management
  • Performance Measurement
  • Supplier Reviews
  • Ideation & Innovation
  • Waste Reduction
  • Alignment with Business Requirements