Tales from the Trenches: Evolution of Strategic Sourcing

Source: Chuks Amajor, Mike Smith, Elena Moreland, National Association of State Procurement Officials (NASPO), Research Paper, March 2015

Strategic sourcing has been around for a few decades. This paper provides valuable insight into the use of this approach to state procurement. It discusses benefits and challenges, common misconceptions, how it differs from traditional procurement and where it can add value. Information obtained through phone interviews with 15 states are highlighted in the paper. The paper also addresses most successful and challenging spend categories and an assessment of how strategic sourcing has evolved over the past decade and where it is headed.
How Strategic Sourcing Can Save a Bundle
Source: Krista S. Ferrell, Governing, Governing Institute Voices, May 8, 2015

It’s a way to do procurement with proven benefits, and it’s catching on at all levels of government. But some myths need to be dispelled. ….
Myth #1: Strategic sourcing equals sole sourcing. Reality: Strategic-sourcing initiatives often result in multiple awards.
Myth #2: Strategic sourcing means buying the cheapest product regardless of quality. Reality: Maintaining or enhancing quality is a key component of most strategic-sourcing engagements.
Myth #3: Strategic sourcing is a one-size-fits-all approach to procurement. Reality: Strategic-sourcing methodology anticipates and provides for unique circumstances and challenges.
Myth #4: Strategic sourcing is a one-time project. Reality: Strategic sourcing involves continuous improvement over the lifecycle of many contract iterations. …..