A Sourcing and Procurement Service Providers (SPSP) is a third party organization or consultant which is used to supplement internal procurement departments. SPSP’s have their own staffing which assist in a variety of tasks for their clients.

These tasks include: strategic sourcing, benchmarking, implementing best practices, supplier rationalization, supplier evaluation and negotiation.

Enterprises utilizing SPSP’s have been able to improve spending coverage, reduce costs for goods and services, employ industry best practices, leverage the latest procurement technologies, and streamline source-to-pay processes – all without taking on the risks and assets required to achieve such results.

At most organizations, it is very costly and difficult to maintain domain expertise in every category of spend. Using a SPSP avoids the burdens of Sourcing and procurement infrastructure for non-strategic categories.

A Sourcing and Procurement Service Provider can provide a rapid analysis of an organization’s spend, negotiate with suppliers, manage supplier implementations and proven industry best practices. A good SPSP will become an extension of the organization’s existing procurement resources, in a non-obtrusive fashion.

In a recent article titled “Strategic Sourcing in the Mid-Market: The Echo Boom in Supply Management”, the Aberdeen Research Group identified that Mid-Market companies have mostly fragmented or limited sourcing efforts. The report concluded that Mid-Market companies should have.

“Increased reliance on third-party consultants to help define strategic sourcing process and train internal employees on commodity costing models, sourcing automation tactics, and category and supply market assessments.”

Additional Research Shows:

“…enterprises that have outsourced management of specific procurement processes and/or specific categories of spending have been able to achieve material cost reductions that average between 10% and 25%. In some cases, material cost reductions topped 30%.”

D&H Sahar will be happy to meet with you to discuss how we may be of service to you. Keep in mind that you do not have to outsource your entire procurement function. We will be happy to assist you in selected spend categories. D&H Sahar can work on a contingency basis, so there will never be any up-front fees.

Strategic Sourcing is a process by which we harness the skills of the supply industry to optimize sustainable competitive advantage for the business and its customers.

Our process aims to develop a secure and responsive supply base capable of meeting current & future business needs in terms of: Quality, Delivery, Cost, Quantity, Technology, Flexibility and Service.

Contingency Based Strategic Sourcing and Procurement Services.

D&H Offers one of the most unique business models in the industry. With D&H Sahar’s Contingency Based Strategic Sourcing Services, our clients can pay us out of actual hard-dollar tangible savings after they are obtained.