Strategic Sourcing—A Good Way to Start—Part 1

Today’s guest blogger is James Baehr, who heads up the IT Strategic Sourcing practice at Greybeard Advisors LLC. Jim has had management roles in IT sales, IT operations, and IT procurement at major firms, before joining Greybeard. Jim can be reached at: Baehr@GreybeardAdvisors.com

So, you assessed all of the opportunities for Strategic Sourcing initiatives and you’re trying to decide which to take on first. Which initiative represents the best potential for results, and is not too complex (when considering external and internal factors)? Which one presents the opportunity to apply and demonstrate the basic principles of strategic sourcing—cross functional teaming, reducing Total Cost of Ownership (TCO), stakeholder involvement, focusing on the complete implementation of solution, adopting best practices, etc.?

In our experience, one of the best areas of indirect spend to consider early in a strategic sourcing program is found in fleet copiers/printers. This is an often-overlooked category. Many companies find that their copier/printer fleet has grown ad hoc, which is seldom cost effective. Different makes, models, terms, and agreements (i.e. leased, purchased, rented) result in a hodgepodge that, on first review, can appear to be overwhelming. Some companies will look to a price point specialist (consultant) who knows the history of the copy/print marketplace. While this may be a viable approach—meaning it’s the path of least resistance for saving some money—it bypasses all the benefits that can come from taking a strategic sourcing approach.

Copiers and printers are not, in most areas of the business, mission critical. However, these devices have high visibility. When a copier breaks down, or you try to remove one because the usage doesn’t justify the cost, you’ll learn quickly how visible these devices can be.

Interested? Part 2 of this blog goes into detail on how to take a strategic sourcing approach that will produce significant benefit for your company.