Strategic Sourcing Procurement Management for IT Hardware: A Case Study

STRATEGIC SOURCING
STRATEGY ASSIGNMENT

Abstract
Strategic sourcing is an important and critical procurement process. Without the correct usage of sourcing
steps the management of business may fall into crisis. Strategic sourcing is termed to define a
professional supplier who prepares for everything in advance. Currently, the methodologies in practice for
strategic sourcing procurement management are subjective in nature with few objective models that are
focused: supplier evaluation, preparation in advance enables the buyer to connect with hardware or data
collection, spend and calculate the analysis, reach a greater conclusion, competitive market research, and
negotiation, payment for goods and services and contracting also not barren of precincts. The paper
demonstrates a buyer who implements strategic sourcing procurement management for the hardware and
listed items. The listed items under an organization requires procurement management under six steps
strategy. The focus will be shed upon the significance of procurement management, role and its aspects in
organization. The significance of framework will be made vital through applicable various suitable
approaches to IT hardware, purchase actions intended and analyze deeply the procurement process:
connection at internal and external forces. The procurement process would further stress upon the cost
reduction to increase the profit, leading to quality and quantity and sourcing etc. The Kraljic matrix in the
paper proposes an approach which is analyzed for locating each item’s position. The paper proposes
elements that are preferable for procurement: Centralized or decentralized, STEEPLE analysis,
relationship administration including quadrant of the Kraljic Matrix, and actions taken in terms of
sourcing and outsourcing.
Keywords: Strategic Sourcing, Procurement, Methodologies, IT Hardware, and Kraljic.

Table of Contents
Abstract..........................................................................................................................................................1
Introduction....................................................................................................................................................3
Road Map.......................................................................................................................................................4
Content.......................................................................................................................................................4
Sourcing Strategies CIPS...............................................................................................................................5
Relationship Spectrum of buyers and sellers.............................................................................................5
Literature Review...........................................................................................................................................6
Mapping Kraljic Matrix.................................................................................................................................7
What happens under mapping?..................................................................................................................7
Methodology Approach.................................................................................................................................7
Conclusion.....................................................................................................................................................8
Work Cited.....................................................................................................................................................8