When someone from within the organization purchases a product without involving the procurement department, it is called Maverick Buying. Maverick Buying doesn’t take into consideration the entire purchasing procedure and disregards any price comparison, negotiation, or contract agreement.

This well arms a company heading into contract negotiations.

• Utilization Management.
• Vendor Strategy Development.
• Spend Aggregation.
• Objectively Informed Negotiation.

Strategic Sourcing Manager Requirements:

1. Bachelor’s degree in business, economics, finance, logistics, or in a related field.
2. A Master’s degree in business or specialization in advanced procurement management will be advantageous.
3. At least four years’ procurement experience in a related industry.

Strategic Sourcing: Five Steps to Secure the Best Suppliers

• Evaluate, collect data and build a strategy.
• Determine the right engagement model.
• Research and award your supplier.
• Contract implementation.
• Invoice set up and monitoring.

Purchasing. One of the key difference of Strategic Sourcing in contrast to conventional purchasing is that it extends beyond purchasing and focuses on converging and sustaining the buyer-supplier-relationships (Skjøtt-Larsen & Schary, 2001).

Six essential steps towards a successful sourcing strategy

• Spend analysis.
• Supplier market share analysis.
• Supplier-spend share analysis.
• Procurement organization’s demand.
• Category risk analysis.
• Vendor qualification.

How much does a Strategic Sourcing Specialist make in the United States? The average Strategic Sourcing Specialist salary in the United States is $90,980 as of October 29, 2021, but the salary range typically falls between $77,818 and $105,275.

Salary Ranges for Strategic Sourcing Managers The salaries of Strategic Sourcing Managers in the US range from $51,071 to $180,000 , with a median salary of $108,120 . The middle 57% of Strategic Sourcing Managers makes between $108,120 and $125,000, with the top 86% making $180,000.

Understanding The Famous 7 Step Strategic Sourcing Process

1. Step 1: Profile The Category.
2. Step 2: Supply Market Analysis.
3. Step 3: Develop The Sourcing Strategy.
4. Step 4: Select The Sourcing Process.
5. Step 5: Negotiate and Select Suppliers.
6. Step 6: Implementation and Integration.
7. Step 7: Benchmarking.

Strategic sourcing allows businesses to consolidate their purchasing power to achieve the lowest possible total cost of ownership and minimise risk to the supply chain.

The result is maverick buying – uncontrolled spending, poor contract compliance and, as a result, low benefit realisation. In our experience, it is not uncommon to find that up to 80 per cent of all invoices are generated from uncontrolled buying, even in large organisations with professional procurement functions.

How Can You Stop Maverick Buying?

1. Step #1: Prohibit maverick buying as a company policy.
2. Step #2: Establish clear processes.
3. Step #3: Educate potential offenders.
4. Step #4: Use technology.

Strategic sourcing is a procurement process that continuously improves and re-evaluates the purchasing activities of a business in order to reduce costs, improved stability, and provide a host of other benefits. How does strategic sourcing work?

Strategic sourcing. Strategic sourcing is an institutional procurement process that continuously improves and re-evaluates the purchasing activities of a company. In the services industry, strategic sourcing refers to a service solution, sometimes called a strategic partnership, which is specifically customized to meet the client’s individual needs.

Identify. Strategic sourcing is not essential for all purchases.

Sourcing strategy deals with planning, designing and building a reliable and competitive supplier base, determining the strategy for procurement, defining pricing strategies and supply chain requirements. The strategy involves integration of its objectives in line with or confirming to the objectives of stake holders in operations, finance.