Today’s Procurement teams need strong collaboration both internally and externally. This means that the Procurement team needs to augment sourcing strategy with strong category management approach and better information about the supply market.
In this article by Ardent Partners, Andrew Bartolini talks about the pre-requisties Procurement teams should have to tie these things together via collaborative sourcing
The three Pre requisites for Collaborative sourcing are as follows
Visibility into enterprise spend, upcoming business requirements and needs, supply markets, and supplier performance are basic building blocks of sourcing.
2. Analytics and Reporting capabilities
Procurement organization cannot attain full visibility without possessing and leveraging analytical capabilities – like spend analysis, contract analytics, and supplier performance reporting. Spend analysis should serve as the foundation to any collaborative sourcing program (indeed, we believe it is one of the four “pillars” of sourcing).
3. Define Holistic Processess
Define processes that are required to support the internal and external collaboration. This includes collaboration with internal departments like A/P,operations,Product development ; and external suppliers.
You can read the full article using the link below.