Procurement Savings through Strategic Sourcing

Today, government agencies must respond to complex and interdependent challenges. Agencies face declining budgets, a shrinking workforce, and increasing socioeconomic goals. To meet mission-critical demands in a resource constrained environment, agencies must transform how they procure goods and services.

Booz Allen Hamilton’s supply chain and logistics consultants can help agencies leverage their buying and positional power to meet these challenges and align their organizations’ strategic goals through strategic sourcing. Our Strategic Sourcing services provide a transformational, collaborative process aimed at achieving the lowest total cost of materials and services while improving service quality. By leveraging global supply chain and logistics consulting experience, Booz Allen employs proven strategic sourcing methodologies that help organizations implement repeatable processes and deliver meaningful results that endure.

Booz Allen provides the following Strategic Sourcing services:

• Spend Analysis. We work with clients to understand their spend by commodity/category and provide a basis for sizing the potential material savings opportunities. Typically performed in-house, we also work with specific service providers (e.g., Dunn & Bradstreet, Ariba, Emptoris, Procuri) who can leverage their unique commodity expertise from working with their proprietary commodity databases (steel, plastic, composites). They have the analytics and ability to sort through a client’s spend quickly.
• Commodity Strategies. We work with clients to develop a unique commodity sourcing strategy that considers the competitive environment, business risk, low-cost country sourcing, micro-economics inherent to the commodity under review, and client strategic positioning in the value chain.
• Supplier Relationship Management (SRM). We create custom-built SRM applications and supply chain transformations, including metrics- and performance-based incentive award fees, along with detailing the requirements flow-down across the supply chain.
• Vendor Qualification. We assist and qualify vendors based on the strategic sourcing strategies that we help develop. We ensure that vendor qualification is consistent with the competitive environment, our client’s unique positioning, and the micro-economics of the commodity under review.