Sourcing Strategy

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Sourcing can be defined as delegating business functions to a separate business unit or third party. Sourcing strategy is about defining what you want to do with the tasks, functions or processes that do not differentiate your company in the market. How can you find the right balance between creating value, speeding up time to market of products and services, remaining flexible, and decreasing costs?

Choosing the right sourcing strategy

There are a number of sourcing options available. These range from the more traditional in-house sourcing option where the business function is tightly interwoven within your organization, to an outsourced shared service centre and joint venture operations. The challenge is to find the right sourcing strategy for you. Because every organization is different, defining an effective sourcing strategy must be based on the characteristics of your specific environment and ways of working. Cost efficiency is important, but not the sole option or even the most obvious. The right sourcing strategy aligns with:

• Your corporate strategy and vision
• Your core business
• Your organization’s culture
• Your market position
• The capabilities of the supplier market

Five steps to an effective sourcing strategy

To support the design, implementation and control of your sourcing strategy, Capgemini Consulting uses a five-step closed loop process as visualized in the figure below.

During this process, we will take you through an extensive self assessment to gain a basic understanding of your sourcing options and its costs and benefits, the design and preparation phase, the migration to the right sourcing strategy and, when appropriate, the execution and/or management of your sourcing strategy.

Controlling and managing delivery

Capgemini Consulting believes a crucial control and management role must be played in the delivery step, especially when a business function is outsourced to a service provider (internal or external). How do you make sure that your service provider is still innovative after the migration? And how do you make sure that they are adapting to changes in your environment? Capgemini Consulting can help you to manage your service provider and to control your business function.

How can we help you?

Capgemini Consulting helps both private and public sector organizations transform into higher performing enterprises. Thanks to our extensive experience and proven track record on outsourcing, sourcing strategy advise and business transformations we are fully equipped to support you and guide you in determining and executing the sourcing strategy that best fits you – whether this is in-house, outsourced, or any option in between. Our result-oriented consultants help you to:

• Improve business focus
• Enhance business process efficiencies and standardization
• Shift the focus from operational activities to more strategic activities
• Reduce time to market
• React faster to the ever changing market
• Access specialized expertise and leading technology

More on sourcing strategy

Capgemini Consulting provides you with support for all business functions, including procurement, finance and accounting, human resources and information technology. At Capgemini Consulting we understand that your organization is unique. Therefore we believe that you need a unique approach to defining, designing, executing and controlling your sourcing strategy.

Read more about our Point of view on sourcing strategy.

Contact

For more information on Sourcing Strategy please contact Stefan Westdijk, T. +31 6 46 220 297.