Sourcing Business Models

Procurement-Transformation

Sourcing Business Model Selection and Management

Not all category management solutions are created equal!

Sourcing Business Model theory suggests sourcing should be thought of as a business model between a two parties with the goal to optimize the exchange. Sourcing Business Models are based on two factors: relationship models and economic models.

Sourcing Business Model Selection

  • When selecting a supply business model for the category you are managing, it is important to understand that a single model will not work for every requirement.
  • Understanding how the requirement supports and is viewed by your business, as well as the internal and external influences, will impact your model choice and the level of effort you apply in your sourcing and ongoing supplier management approach.
  • The conventional approach looks at sourcing as a “make” or “buy” decision. Most organizations use a transaction-based relationship and economic model when they acquire goods or services.

 

The Seven Sourcing Business Models and Innovation

As goods and services become more strategic and the business environment more unpredictable, organizations should shift to more sophisticated Sourcing Business Models. The type of Supply Business Model that is selected will determine the ability to enhance the level of thought and idea exchange with the supplier to enable innovation.

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Sourcing Model Selection Support

The Forefront Group has certified resources to assist organizations in identifying the best fit Sourcing Business Model for their requirements.

  • Sourcing Business Model Selection Workshop
  • Facilitated cross functional mapping sessions
  • Coaching and real time knowledge transfer
  • Sourcing Business Model administration and management guidelines

 

To receive our FREE Open Source Sourcing Business Model Toolkit fill out the form below.

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