Strategic Sourcing
The geopolitical context has caused significant impacts on global supply chains, resulting in inflationary pressures, interest rates increases, and higher overall production costs.
Managing supplies strategically is therefore essential to the performance of the entire production chain, including TCO (Total Cost of Ownership), administrative and usage costs, as well as input pricing strategies.
Establishing a Strategic Sourcing model enables a broad understanding of the relevance and availability of the inputs/items required for operations, the characteristics of markets and qualified suppliers, and the negotiation power with them.
Within this model, inputs/items are classified into four categories:
• Non-critical;
• Leverage;
• Bottleneck;
• Strategic.
Based on this segmentation, negotiation strategies are defined for each category according to the identified strengths, whether through consumed volumes (bargaining power) or purchasing and relationship models (partnerships, long-term contracts, spot purchases, auctions, etc.).
Beyond cost reductions, the implementation of Strategic Sourcing concepts promotes collateral organizational transformations, enabling cost-benefit-based decision-making, the development of more professional supplier relationships, and increased accuracy and predictability across the entire supply chain.
BFG has extensive experience in implementing Strategic Sourcing concepts across different industries, enabling comprehensive supply mapping, market and supplier analysis, definition of purchasing strategies and category targets, support in negotiations, and the development of supply agreements (SLAs, pricing, etc.).
Interested in expanding your knowledge of Strategic Sourcing? Contact our specialists, who can support the achievement of immediate results and the critical preparation for the medium to long term.
Frederico Barbosa
Co-founder / Sr. Partner at BFG Consult Engineer graduated from UFMG, with an MBA from INSEAD (France). Extensive experience in management consulting, with a strong track record across multiple industries and geographies. I help companies overcome challenges and achieve tangible results by driving revenue growth, improving commercial and financial performance, enabling expansion into new markets and offerings, and enhancing customer satisfaction.