Integrating with suppliers is a critical piece of the supply chain puzzle. To be effective, companies need to integrate with consortiums and trading partners.

Optimization of Purchases and Control over Procurement involves developing system and collaborative approaches to products-and-services sourcing — using volume, supplier relationships and technology to dramatically reduce external spend, while improving quality and supplier performance. Activities in this arena include:

• Sourcing diagnostics/spend analysis
• Strategic sourcing
• E-sourcing
• Supplier management
• E-procurement
• Procurement process design
• Procurement organizational design

Key business issues

• Supplier cost reduction
• Internal process cost reduction