The math was undeniable. The "cheapest" vendor was actually the most expensive.
Over the next month, Elena applied the steps from the PDF with religious devotion. She used the she found in the document. Instead of pricing being 80% of the decision score, she reweighted it: 30% Price, 30% Quality, 20% Delivery Reliability, and 20% Innovation.
Marcus looked at the report, his eyebrows raising. "Gasket spend is down... 15%? But I thought you switched to a more expensive supplier?" strategic sourcing tresa thompson pdf
She scrolled deeper. Thompson outlined a seven-step methodology. It looked rigorous, almost academic, but as Elena read the case studies embedded in the PDF, she saw how it transformed failing supply chains into profit centers.
Elena ran the Total Cost of Ownership (TCO) model based on the formulas in the Thompson PDF. The math was undeniable
✅ (Strategic vs. Leverage vs. Bottleneck vs. Routine) ✅ Do you understand "should-cost" vs. "will-cost"? ✅ Is your sourcing team measured on savings, or on value generation?
"We are willing to sign a three-year contract," Elena said, sliding the draft across the table. "But in exchange for that volume security, we need you to hold inventory for us and guarantee a 48-hour turnaround." She used the she found in the document
The fluorescent lights of the 42nd-floor conference room hummed with a low, headache-inducing buzz. Elena stared at the stack of papers in front of her, the numbers blurring into a meaningless stream of red ink.
Many professionals, including those mentioned in supply chain management contexts, follow a standard 7-step framework to optimize their sourcing:
Marcus nodded, a rare smile cracking his serious demeanor. "Strategic sourcing. I’ve heard of it, but I’ve never seen it executed like this. Where did you learn this approach?"