© 2011 Sixhills Consulting LtdPerspectives on Aggressive SourcingAggressive sourcing opportunities arise for clients when they can flex their market muscle with a concerted, rigorous approach to purchasingImplications of Purchasing GridBuy-side and Sell-side• Senior sales teams• Innovate products and services• Top-level teams• Understand client market• Exploit leverage!• Innovate• Employ order takers or move to self service• Increase service sophistication• Maximise sales and service efficiency• Senior sales teams• Use ‘anti-sourcing’ tactics• ‘Win-win’ focus: increased volume at expense of competitors• Pay attention to the details ‘Traditional’ Buy-sideSell-sideSource: Ashridge; Firm analysisIncreasing Importance• Level of expenditure• Impact on profit/performanceIncreasing Supply Difficulty, e.g.• Number of suppliers• Ease of specification• Market efficiency• Intellectual ownershipReduce ExposurePartnership Sourcing• Senior level negotiators• Continuity of supply• Stimulate supply market or reduce uniqueness of requirements• Top level negotiators• Longer-term contracts• Mutual hostages• Open book• Continuous improvement• Supply substitutionMarket + EfficiencyMarket + Muscle• Junior staff• Standardise• Optimise stocks• Streamline processing• Automate• Aggregate demand• Senior buyer with market knowledge• Aggressive sourcing• Short-term contracts• Volume optimisation• Regular benchmarksPerspectives on Business to Business RelationshipsP4
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