What is a Strategic Sourcing Plan?
A strategic sourcing plan outlines a company’s approach to acquiring materials and services. It outlines the objectives, actions, measurements and targets that a company must take to ensure that their sourcing activities are cost-effective and efficient. The plan also details how a company will manage their relationships with suppliers, mitigate supply chain risks and optimize cost savings.
What's included in this Strategic Sourcing Plan template?
- 3 focus areas
- 6 objectives
- 6 projects
- 6 KPIs
Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.
Who is the Strategic Sourcing Plan template for?
This Strategic Sourcing Plan template is designed for organizations of all sizes and industries to create a plan to manage their strategic sourcing activities. It provides a comprehensive framework that organizations can use to create a plan that meets their unique needs and objectives.
1. Define clear examples of your focus areas
A focus area is a broad category that outlines the overall goals of your sourcing plan. Examples of focus areas may include Strategic Sourcing, Supplier Relationship Management and Risk Management. It is important to identify the focus areas that are most relevant to your organization and create measurable objectives and targets that are aligned with them.
2. Think about the objectives that could fall under that focus area
Objectives are the specific goals that a company wants to achieve with their sourcing plan. Each objective should be measurable, achievable and realistic. For example, under the focus area of Strategic Sourcing, an objective may be to optimize cost savings.
3. Set measurable targets (KPIs) to tackle the objective
KPIs are measurable targets that an organization sets in order to track their progress towards an objective. Examples of KPIs may include cost of goods, sourcing time, supplier retention rate, supplier satisfaction score and supply chain disruptions. Each KPI should have an initial value and a target value that can be measured.
4. Implement related projects to achieve the KPIs
Projects (actions) are the specific initiatives that an organization needs to complete in order to achieve their objectives. Examples of projects may include leveraging market dynamics, automating sourcing operations, investing into supplier development and developing a long-term strategy. It is important to create a timeline for each project so that progress can be tracked.
5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy
The Cascade Strategy Execution Platform is a powerful tool that enables organizations to easily create, track and measure their strategic sourcing plans. It can be used to create detailed plans with measurable objectives, projects, and KPIs. The platform also provides real-time dashboards and insights that can help organizations quickly identify and address any issues with their plans.