Lean Six Sigma’s DMAIC approach meets 5-Step Strategic Sourcing Process to generate
data-driven, collaborative sourcing strategies that can be implemented with ease.
Read on to see how combining these two methodologies delivers results every time.
5-Step Framework Courtesy: GlaxoSmithKline SGM Process
Step 1: Define (D) - Process Initiation
This is the kick-off for our engagement with your organization. We work closely with your internal teams to define the problem and align on goals.
Successful sourcing strategies are aligned to business requirements, and we like to learn not just from your Sourcing team but also from your key stakeholders.
You can expect a Problem Definition, Project Charter and a recommended Sourcing Approach when we complete this step.
Step 2: Measure (M) - Situation Analysis
Measure what matters. Defining current state metrics is as critical as defining success metrics for your future state and we tackle it in this step.
Once we align on internal business requirements, we start working with external partners to understand supply market dynamics through RFxs.
You can expect summaries of RFx events along with Category Analysis and Supplier Analysis using intuitive frameworks.
Step 3: Analyze (A) - Strategy Creation
Data collected thus far is analyzed in further detail to arrive at multiple options that can be evaluated to deliver medium-to-long term sourcing strategies for your organization.
This step includes gaining stakeholder approval to strategy which can be challenging without the type of detailed forethought we put into it in our first two steps.
You can expect a Source Plan document which is a strategic action plan for your Sourcing team detailing long-term strategy along with a well-defined implementation plan.
Step 4: Improve (I) - Strategy Implementation
Even the most brilliant sourcing strategy can fail without a planned approach to implementation. Change Management will be carefully planned to minimize disruption to stakeholders and their daily operations. We will guide your Sourcing team to negotiation success by building a robust negotiation plan.
You can expect a detailed Negotiations Guide when we complete this step of our engagement. We will continue to guide your team through Contract Completion.
Step 5: Control (C) - Continuous Improvement
Change is hard, even when everyone in the organization is bought into it. Establishing robust procedures helps the team sustain our improved approach to Sourcing.
Supplier Relationship Management and Supplier Performance Measurement are the key focal points of this step.
You can expect a Post-Implementation Review as well as a Supplier Scorecard when we complete this final step of our engagement.