Strategic sourcing
Every company needs to consider a strategic approach in the procurement of
items of high value, high annual spend, where acquisitions directly impact on
competitive advantage or have a high cost of failure. This typically requires
a more analytical approach.
MUSCL can assist in developing and implementing procurement strategy where
total cost analysis is required rather than just price.
The process would typically involve a combination or all of the following
activities:
- Internal data gathering
- Supply market analysis
- Identification of industry best practises
- Alignment with internal customers needs
- Opportunity identification
- Supplier pre-qualification
- Supplier profiling and selection
- Tender and or negotiation of contract and award
- Business planning and cost reduction efforts
 Cost reduction, Chevron's Angola Ops
The end result should be a lowered total cost of acquisition relative to
historic costs. There should also be ongoing measurable improvements in quality,
cost reduction and contribution to the bottom line of the business.
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