Strategic Sourcing

Most large state organizations have active procurement departments that deal with thousands of vendors and hundreds of contracts on an annual basis. These organizations often miss out on savings opportunities that could be recognized based on the volume of goods purchased on an annual basis. Best practices in eProcurement have revealed that aggregating spend across multiple agencies and leveraging strategic sourcing practices results in significant price savings and a thorough understanding of state spending patterns.

In order to achieve sustainable long-term savings, a state organization needs to agree upon and support a strategic sourcing strategy and a targeted savings goal. The state also needs to continually analyze spend data which will enable the sourcing program to find additional savings.

Epylon offers strategic sourcing services and counsel on how to lower the cost of doing daily business, shorten the buying cycle, reduce labor costs and achieve the best overall value on goods and services. Epylon's experienced sourcing staff has developed proven processes for consolidating spend and optimizing state procurement dollars.

Epylon's strategic sourcing process consists of three phases:

• Strategy and diagnosis - collect data and develop of a strategy and prioritization for each commodity type where cost savings can be achieved and sustained
• Vendor assessment and negotiation - evaluate vendors for price and performance, issue RFPs, and negotiate aggregated spend contracts in order to optimize the supplier base
• Implementation - develop a process to continually track supplier performance and ensure that full value is achieved

For more information on how Epylon's strategic sourcing services can increase your state's efficiency and provide long-term savings, please contact stategov@epylon.com.