Page: 2 Strategic Sourcing Process Overview Profile Category Internally & Externally Create Selection Factors & Evaluate Suppliers Negotiate & Develop Sourcing Recommend- action Implement Agreements Strategic Sourcing Methodology Activities Deliverables or Tools Validate Internal Requirements & Profile Category Conduct Industry Analysis Internal Category Profile TCO Model Cost Reduction Ideas Industry Profile Build TCO Model Develop Sourcing Objectives Sourcing Strategy Plan: Competitive Supplier Selection or Existing Supplier Development Conduct Supplier Analysis Create Supplier Selection Criteria Supplier Selection Decision Matrix RFIs (optional) Short List of Suppliers Complete Traditional RFP Process RFPs / RFQs eAuctions Collaborative Discussions Conduct eAuction(s) Collaborate w/ Incumbent Supplier(s) - AND/OR - Prepare Fact- Based Negotiation Packages Negotiate Agreements Fact-Based Negotiation Packages Supplier Negotiations Presentation Sourcing Recommendation Finalized Agreements Benefits Realization Continual Supplier Improvement Implement Agreements and Monitor KPIs Evaluate Performance and Develop Suppliers Develop Sourcing Strategy Conduct Competitive Exercise w/ Approved Suppliers Fast Track for Quick Savings Develop Sourcing Strategies & Tactics ANALYSISSTRATEGY SUPPLIER SELECTION IMPLEMENTATION Assess Opportunity & Establish Team Assess Opportunity Obtain Sponsorship & ID Team Create Project Plan Project Plan Analyze Current Spend Document Requirements
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