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Strategic Sourcing Agreement

Written By: Chris - Oct• 09•21

Facilitating work with the SOS framework, but also requires a different approach from all stakeholders. Strategic purchasing decisions are no longer made by instinct or individual power, but by conscious and collective analysis and evaluation. Criteria, assessments, compromises and decisions must be explicit, rational and transparent to all parties involved. This will improve buy-in, change and communication, both internally and externally. The application of a structured approach to strategic sourcing and cooperation, such as the SOS framework, increases awareness of business and technology strategies, establishes more efficient operating models and increases the mutual value of supplier relationships. A collective and transparent approach guides internal and external stakeholders towards coherent construction and implementation. For example, a service manager responsible for the most critical service provider will also own the service contract and supplier relationship and take care of the cooperation at the tactical level. The selected relationships will then be fully set up and implemented with tailored governance, organization, information, processes and resources. All this is underpinned by timely treaties.

After this phase, supplier relationships are operational and provide business value. Strategic sourcing helps a company build long-term relationships with its suppliers. By placing greater emphasis on suppliers` core competencies and ensuring the right suppliers to achieve the right procurement objective, strategic procurement helps create synergy between organizations and their suppliers. Lasting relationships with suppliers also mean that, when suppliers are evaluated and taken into account in different purchasing decisions; They feel motivated to optimize their performance to achieve the organization`s goals. KPN`s Chief Technology Officer (CTO) had a portfolio of entire strategic technology themes to explore future technologies for KPN based on its existing business strategy. The SOS framework was used to overlay a sourcing lens on each of these themes in combined business and technology architect workshops. The result has been both a better vision of the future operating model and a much better definition of sourcing and collaboration requirements. These results contributed to the validation of the strategies and were used to get in touch with suppliers. The sourcing process analyzes what the organization buys from whom, at what price, and in what volume…

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