The procurement function is often torn between
hard-to-reconcile goals. To begin with, procurement may
need to be lowered in order for the company to remain
internationally competitive. But the company also needs
to build up and coordinate an effective, long-term
supplier network, one that not only guarantees
reliability and quality, but also facilitates jointly
developed innovations. In its Value Sourcing approach,
Oliver Wyman applies certain tools that are designed to
create long-term value gains, as a complement to the
customarily applied strategic procurement optimization
techniques. In other words, we too use traditional
techniques such as volume bundling, e-procurement and
best practice sharing in our Value Sourcing approach,
but in addition to that, we envision ways to optimize
the long-term value contribution of the procurement
function, drawing on the expertise of a globally active
strategy consulting firm. pdf
