A strategic approach to procurement is proven to enhance the effectiveness and efficiency of organisation’s operations as well as saving revenue through effective sourcing, transaction cost reductions and standardised procurement processes.

Sourcing refers to the value added process of selecting suppliers and the respective cooperation scheme and it must be supported by advanced analytics amp;amp; market intelligence, supplier performance information and a concrete and well-developed strategy. On the other hand, procurement refers to the transactional of the relationship and should be streamlined as much as possible in order to achieve efficiency.

Before implementing any sourcing / procurement initiatives, it is very important to analyze past, current & projected spending patterns. The analysis must span the entire enterprise and include data that is often collected from various departments and locations. Such an analysis of direct and indirect spend gives the company the information and decision-support required to develop supply strategies that are aligned with the objectives of the organization and to identify and prioritize sourcing & procurement improvement initiatives.