Why is Strategic Sourcing Essential for Purchasing Teams | Enable
Summary
That’s why it is essential for purchasing teams to adopt effective strategic sourcing skills and processes in todays complex supply chain. A company can spend more than 60% of its revenue on buying goods and services, so even a modest reduction in purchasing costs can have a significant effect on profit. Identifying and selecting suppliers who will provide the highest value at the right pricing enables purchasing to continuously achieve higher cost savings for their organization. As Gartner says in this cost optimization playbook, “When contracting with strategic suppliers, it is important to structure agreements with mutually beneficial outcomes. In a recent survey conducted by Gartner, 70% of respondents selected “enhance supplier collaboration” as their primary tactic for how purchasing teams are looking to generate more business value.
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