Integrated Supply Management: Strategic Sourcing & Supplier Relations
MRO Integrated Supply Chain Management – supplier-agnostic, but supplier-savvy.
Since SDI is not a distributor, we’re not aligned with any specific product lines or suppliers. We make objective, unbiased recommendations to develop the most fitting integrated supply chain management solutions for more efficient, cost-cutting transaction processing. All based on 40+ years of integrated supply partnerships with suppliers and clients in a variety of industries.
Our goal: beneficial supplier relationships.
We work to establish mutually beneficial relationships with your existing supply base, as well as new suppliers. The SDI team handles all MRO supplier negotiations, sourcing, management and performance to ensure that all spending contributes to your overall savings. After a comprehensive data review, we provide strategic sourcing recommendations for a truly integrated supply chain, including the right sourcing, supplier consolidation, re-sourcing, product standardization and more.
MRO Integrated Supply Management designed for your organization.
As a result of our data normalization and taking your inventory requirements into account, we’ll create a personalized plan to address spend by category, supplier, and manufacturer – SDI sourcing plans are aligned to support your unique objectives. Your program will include projected savings by category, which sets up a framework for negotiating on your behalf. We’ll also include specific steps to improve the pricing and productivity of existing suppliers within your supply chain.
Six Sigma principles and methods.
SDI’s global strategic sourcing group, as well as the company overall, follows the principles of both Lean and Six Sigma in our processes. This commitment allows us to extract the maximum value from our sourcing exercises to deliver the most improved outcomes throughout every phase of our integrated supply chain management – all carefully designed to fit each client’s unique business objectives.
The SDI sourcing process, incorporating DMAIC Six Sigma step by step.
- Define the sourcing groups; assess savings opportunities; define preliminary hypotheses and data needs; establish project team, structure and timeline
- Measure sourcing group spend; gather specs; ID sourcing group procure processes and constraints; profile sourcing group supply market
- Analyze and assess bargaining position; select sourcing strategies and tactics; establish baseline spend and projected savings; ID, screen and pre-qualify potential suppliers
- Improve – select implementation path; issue RFP or conduct auction; plan and conduct negotiations; implement new supplier agreements
- Control – create best-practice procurement organization; implement continuous bench-marking; determine when to resource sourcing group
Realistic savings you can expect.
Once approved, we implement the sourcing strategy and measure compliance, with a staged plan for hard cost savings, as well as long-term cost avoidance. And, as with every SDI client, we bring a responsible approach to the supply chain – we seek suppliers that marry with your vision to meet your sustainability goals.
Where do we start?
Find Your Industry
- Basic Materials
- Consumer Goods & Services
- Service Industry
It takes a progressive manager to push the organization to look at indirect spend and managing it in a different way - but once you see it, then you realize the opportunity.
In the third post in this series on MRO As-a-Service by Spend Matters, Pierre Mitchell and Michael Lamoureux talk about how managing MRO as a process delivers benefits from efficiency to effectiveness and beyond to an evolutionary phase. The next generation of value, MRO-as-a-Service, helps organizations build intelligent, agile, scalable and integrated supply chains (direct and indirect).
The project team has worked its way through Define, Measure, Analyze, and Improve. It’s time to begin the Control phase. The key stakeholders gather to evaluate the solution as implemented and create a plan to sustain the improvements. The goal is to standardize the improved processes, establish an audit schedule and schedule periodic follow-up to identify additional opportunities for improvement.