How do I evaluate strategic sourcing opportunities?
Strategic sourcing opportunities should be evaluated in light of the impact of procurement costs, capacities and inbound freight on the entire supply chain, not myopically as only a function of purchase price variance and other procurement contract terms. Relevant issues include manufacturing locations and requirements, scale economies, inbound freight, sustainability objectives, customer cost-to-serve, supply chain vulnerability, total supply chain cost minimization and corporate profit maximization. The only advanced analytics tool capable of offering such a comprehensive perspective is a strategic supply chain design package with a true mathematical optimization solver engine. For over 35 years the Insight product SAILS has served as the industry reference standard for strategic supply chain design and is ideally suited to address the complex tradeoffs associated with strategic sourcing.