Global Standard for Procurement and Supply

Current segment

Level: Managerial

Theme: Sourcing

Segment 6.7 Strategic Sourcing

Segment 6.7 Strategic Sourcing

Knowledge: Will know and understand Capabilities: Will be able to

The assessment of market factors in the development of a strategic sourcing or category management process, such as:

  • Industry dynamics and pricing behaviour
  • Financial data on suppliers
  • Market demand and supply factors

Evaluate market factors that influence the supply market to assist the development of appropriate sourcing plans that shape markets and improves commercial leverage

Motivations, cost / margins and working practices of key suppliers

Advise colleagues and internal stakeholders on the implications of the motivations, cost / margins and working practices of key suppliers

Techniques for assessing supplier performance and capabilities

Undertake a strategic assessment of key suppliers using modelling and techniques of analysis

The assessment of sourcing options for strategic supplies of products or services, including:

  • Make versus buy
  • The type of contract
  • The duration of contract
  • Competitive/non-competitive sourcing
  • Number of suppliers and lotting strategies
  • The use of eSourcing
  • Global sourcing/off shoring/low cost country sourcing or onshoring

Assess the sourcing options for supplies of products or services establishing the capability of suppliers and the supply chain prior to commitment

Internal stakeholders' involvement in strategic sourcing and category management

Assemble cross functional teams and consult with internal stakeholders to agree sourcing options for any specific category of purchase

The use of competition, direct negotiation or joint proposition improvement in strategic sourcing/category management

Develop and apply appropriate, objective selection and award criteria and use them to evaluate supplier proposals

The use of selection and award criteria relevant to the category of purchase

Develop and apply appropriate, objective selection and award criteria and use them to evaluate supplier proposals

How to create presentations about category plans

Develop category plans that define the approaches to be taken to sourcing categories. Communicate these plans to stakeholders

Knowledge: Will know and understand

The assessment of market factors in the development of a strategic sourcing or category management process, such as:

  • Industry dynamics and pricing behaviour
  • Financial data on suppliers
  • Market demand and supply factors
Capabilities: Will be able to

Evaluate market factors that influence the supply market to assist the development of appropriate sourcing plans that shape markets and improves commercial leverage

Knowledge: Will know and understand

Motivations, cost / margins and working practices of key suppliers

Capabilities: Will be able to

Advise colleagues and internal stakeholders on the implications of the motivations, cost / margins and working practices of key suppliers

Knowledge: Will know and understand

Techniques for assessing supplier performance and capabilities

Capabilities: Will be able to

Undertake a strategic assessment of key suppliers using modelling and techniques of analysis

Knowledge: Will know and understand

The assessment of sourcing options for strategic supplies of products or services, including:

  • Make versus buy
  • The type of contract
  • The duration of contract
  • Competitive/non-competitive sourcing
  • Number of suppliers and lotting strategies
  • The use of eSourcing
  • Global sourcing/off shoring/low cost country sourcing or onshoring
Capabilities: Will be able to

Assess the sourcing options for supplies of products or services establishing the capability of suppliers and the supply chain prior to commitment

Knowledge: Will know and understand

Internal stakeholders' involvement in strategic sourcing and category management

Capabilities: Will be able to

Assemble cross functional teams and consult with internal stakeholders to agree sourcing options for any specific category of purchase

Knowledge: Will know and understand

The use of competition, direct negotiation or joint proposition improvement in strategic sourcing/category management

Capabilities: Will be able to

Develop and apply appropriate, objective selection and award criteria and use them to evaluate supplier proposals

Knowledge: Will know and understand

The use of selection and award criteria relevant to the category of purchase

Capabilities: Will be able to

Develop and apply appropriate, objective selection and award criteria and use them to evaluate supplier proposals

Knowledge: Will know and understand

How to create presentations about category plans

Capabilities: Will be able to

Develop category plans that define the approaches to be taken to sourcing categories. Communicate these plans to stakeholders

This segment was last updated on: 21st May 2021

The Global Standard for Procurement and Supply structure

Released in 2014 the Standard is a competency framework of procurement and supply skills, knowledge and capabilities that can be used by individuals and organisations to identity training and professional development needs at varying levels of competency.

The Global Standard for Procurement and Supply structure
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