John P. Willi

This is an on-going operational excellence initiative and our results have certainly validated our approach and produced an immediate beneficial impact. The methodology we have implemented truly drives improvements and bottom-line results. We are very proud that the Executive Leadership at our organization has promoted the use of Purchasing’s approach in assessing and managing other areas of the organization.

A well-conceived strategic sourcing program starts with an analysis of the total spend or operating expenses of the organization utilizing an “ABC” analysis and category/spend segmentation matrix. This analysis allows for the prioritization of the “sourceable” or “manageable” spend as distinct from other expenses such as taxes, depreciation and interest for which different strategies should be effectively applied.