Daily Archives: March 18, 2014

What are the Key Ingredients to a Successful e-Sourcing Strategy? Part I

When it comes to (e-)Sourcing, every services, software, and full solution vendor has their own process. For example,

On the services front,

DRM Procurement Services proposes:

  1. Assess
  2. Analyze
  3. Strategize
  4. Tender
  5. Negotiate
  6. Implement
  7. Complete

Kuvaq composes:

  1. Category Profiling
  2. Strategy Selection
  3. Supplier Identification
  4. e-Sourcing Implementation (RFx, Auction, etc.)
  5. Supplier Selection and Negotiation
  6. Supplier Integration
  7. Supply Market Benchmarking

and State of Flux exposes:

  1. Project Definition
  2. Market Investigation
  3. Strategy Development
  4. Marketplace Testing
  5. Negotiation
  6. Contract Implementation
  7. Supply Chain Development

On the vendor front,

Moai has promoted a nine-step sourcing process that goes like this:

  1. Spend Analysis
  2. Strategy Development
  3. Supplier Identification
  4. RFX Creation and Distribution
  5. Negotiation
  6. Supplier Award
  7. Contract Negotiation
  8. Contract Management
  9. Contract Fulfillment

Quantris has presented an eight-step sourcing process with a split:

  1. Data Collection
  2. Analysis/Evaluation
  3. Develop Strategy
    — Go / No Go —
  4. Vendor Identification
  5. Bid Solicitation
  6. Negotiation
  7. Vendor Selection
  8. Implementation

and Iasta developed a seven step sourcing cycle with a parity bit:

  1. Spend Analysis
  2. Project Data Collection
  3. e-RFx and Supplier Management
  4. Bid Collection & Negotiation
  5. Decision Optimization
  6. Award & Contract
  7. Post-bid Management

(A Google Image Search*1 will find them all.)

As you can see, they are all essentially the same, more or less, and all include the following eight*2 steps, in approximately the following order:

  • Spend Analysis
  • Project Selection
  • Strategy Development
  • Supplier Identification
  • Bid Collection
  • Bid Analysis and Supplier Selection(s)
  • Contract Negotiation and Award
  • Post-Award Contract Management

So, at a high level, we know what to do. But do we really know how? And more importantly do we know what we need to do it right and achieve success?

To be continued …


*1 When in doubt, Google that Sh!t.
*2 To make for a lucky sourcing cycle!