In this issue 18 February 2020:
Project Ignite – Strategic Sourcing Case Study
In my last blog Procurement Capability and Maturity Model dated 30 January 2020, one of the improvements focussed on was the introduction of strategic sourcing. The practical approach adopted is discussed below.
- Identify sourcing opportunities and build category plans.
- Identify sourcing opportunities and sourcing approaches to effectively deliver sourcing benefits.
- Establish the sourcing governance for effective procurement decision making.
- Obtain approval from the relevant governance committees to move into the sourcing phase of this project.
External Market Forces
The company should focus on identifying suppliers with good local content credentials. Appointed vendors must however be compliant with legislation and should be able to meet environmental requirements.
- Although there is a trend away from cash, most countries on the continent are still very cash dependent. Suppliers are shifting their focus from risks to managing costs in a better way. Technology plays a key role in reducing costs and will be critical from reducing the dependence on humans as well through the advent of ATM’s, note sorters and Cash in Transit companies
- Barriers to entry include high capital outlays and high operating costs, the market remains very competitive in the battle for market share
- The countries should focus on identifying suppliers with good local content credentials. Appointed vendors must however be compliant with legislation and should be able to meet environmental requirements
firstname.lastname@example.org | email@example.com | www.tkjprocurement.com