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Integrated Supply Management: Strategic Sourcing & Supplier Relations

Integrated supply 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 management solutions for more efficient, cost-cutting transaction processing. All based on 40+ years of working in partnership 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 truly integrated supply management, including right sourcing, supplier consolidation, re-sourcing, product standardization and more.

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 integrated supply 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.

Success Story

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.

SDI at Work

With the start of a new year, it’s a great time to shed old habits and paradigms. Let’s buck the status quo! We’ve listed out 15 MRO Resolutions for 2015 – the year we think differently.

FedEx and UPS are making a paradigm shift in the way they price small parcels, and it will have a significant impact on all companies that rely on them for their services

Meet our experts

James's proactive and meticulous nature ensures our strategic sourcing group is always connected with our clients’ entire enterprise.