Studie - The Orbys Guide to Sourcing Strategy

Introduction

Getting sourcing decisions rightoutsourcing the right areas under the right types of sourcing arrangement with the right strategic partnersis increasingly important and can determine the success or failure of organizations in today's hyper-competitive global marketplace.

Scope

*This guide outlines Orbys' own sourcing strategy methodology that it uses with its clients.

*The views and recommendations in this guide are based on more than 700 sourcing engagements delivered by Orbys consultants.

Highlights

It is essential to start by identifying objectively those business processes within your organization that are truly core differentiators, rather than just critical support processes, as these should never be outsourced. This report provides a framework to identify these processes and gain stakeholder approval.

Reasons to Purchase

*Spend by organizations on external business service supplies continues to rise, and the processes outsourced are becoming ever more business-critical.

*The most critical issue facing today's sourcing players is the evolution of effective sourcing strategy and sourcing management guidelines.

OVERVIEW 2

Catalyst 2

Summary 2

Methodology 2

EXECUTIVE SUMMARY 2

Sourcing strategy starts with a high-level review 2

Five key dimensions to consider 3

Outsourcing individual work packages 3

Realizing the full value 4

Table of Contents 4

Table of figures 4

INTRODUCTION 5

Delivering on the promised benefits of outsourcing 5

HIGH-LEVEL REVIEW OF SOURCING POTENTIAL 6

The need for a holistic and strategic approach to outsourcing 7

Identifying the potential candidates for outsourcing that will deliver the most value 8

Other factors to consider when selecting candidates for outsourcing 9

DEVELOPING YOUR OVERALL SOURCING STRATEGY 11

Clarifying and agreeing on objectives and constraints across all stakeholders 11

Key dimensions of an overall sourcing strategy 12

Scoping and packaging 13

Supplier partnering models 15

Global delivery model 15

Personnel and social considerations 17

Commercial model 17

DECIDING WHETHER TO OUTSOURCE INDIVIDUAL WORK PACKAGES 19

Quantify the likely benefits in advance 19

Taking proper account of the risks 20

Preparing a business case 22

Feasibility assessment through a high-level implementation plan 23

Synchronizing sourcing initiatives across the organization 24

Organizing work packages and suppliers to best effect 25

Preparing for implementation and supplier engagement 27

Monitoring benefits and risks 28

Defining the sourcing arrangements 29

Managing the process 29

PLANNING FOR FULL VALUE REALIZATION 30

Governance and supplier management framework 30

Retained organization and supplier management 32

Create a joint 'value realization framework' with your supplier 33

IN SUMMARY: KEY FACTORS FOR A SUCCESSFUL OUTSOURCING STRATEGY 35

Top 10 questions to consider when developing a sourcing strategy 35

Top 10 factors to consider when screening candidate areas for outsourcing 35

Top 10 tips for realizing the full potential value of your sourcing arrangements over time 36

CASE STUDIES 37

Best-of-breed sourcing strategy: major logistics and supply chain management organization 37

Sourcing strategy with global delivery: major global airline 38

APPENDIX 40

Orbys Consulting 40

Disclaimer 40

List of Figures

Figure 1: Sourcing strategy: the overall approach 7

Figure 2: Identifying the candidate processes 9

Figure 3: Review of candidate processes and assessment of potential benefits 10

Figure 4: Establish strategic sourcing options 13

Figure 5: Quantifying the expected benefits of outsourcing each candidate process 20

Figure 6: Quantifying the expected risks of outsourcing a candidate process 22

Figure 7: Decision by process 23

Figure 8: Taking a top-down approach to planning 25

Figure 9: Finding the optimum mapping of work packages onto suppliers 26

Figure 10: Developing detailed plans and deliverables for all the key activity streams 28

Figure 11: Sourcing management framework 31

Figure 12: Optimum retained organization 32

Figure 13: Orbys value realization approach 34

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