Sourcing & procurement

In most cases, purchases account for one of the largest if not the largest part of the total cost. Thus, the importance of sourcing and procurement is self-evident. Though many times the terms sourcing and procurement are used interchangeably, they actually represent two fundamentally different concepts.  Sourcing refers to the value added process of selecting suppliers and it must be supported by advanced analytics & market intelligence, supplier performance information and a concrete and well-developed strategy.  On the other hand, procurement refers to the transactional part of the relationship and should be streamlined as much as possible in order to achieve efficiency.

Orion can provide you with an integrated approach incorporating spend analysis, strategic sourcing, supplier management and procurement optimization.

Spend Analysis

Before implementing any sourcing / procurement initiatives, it is very important to analyse past, current & projected spending patterns.  The analysis must span the entire enterprise and include data that is often collected from various departments and locations and must also identify sourcing barriers & limitations, i.e. single / sole source,   legal / contract restrictions, etc. Such an analysis of direct and indirect spend gives the company the information and decision-support required to develop supply strategies that are aligned with the objectives of the organization and to identify and prioritize sourcing & procurement improvement initiatives.