Strategic Sourcing Strategy: IT Hardware Procurement Report

This report delves into strategic sourcing, emphasizing its critical role in procurement management, particularly within the context of IT hardware. It outlines a six-step strategy for procurement management and highlights the significance of establishing a robust framework. The report explores various approaches, including the application of the Kraljic matrix for item positioning, and discusses elements like centralized versus decentralized procurement, STEEPLE analysis, and relationship administration. It also examines different sourcing strategies such as dual sourcing, ethical sourcing, global sourcing, and outsourcing. The report further presents a case study on the NHS procurement process and analyzes IT hardware needs, cost considerations, and potential cost savings. The report aims to provide insights into how strategic sourcing can drive cost reduction, enhance quality, and ensure timely delivery within an organization.

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

Introduction
The purchasing department is often the first point of contact between a company and its
suppliers. It specifically deals with managing the supply base in an effective manner by
identifying and selecting suppliers for strategic long-term partnerships, involving in supplier
development initiatives by effectively allocating resources (Anderson and Rask). This enables to
enhance supplier performance by providing benchmarks and continuous feedback to suppliers. In
some cases, involving supplier pruning activities also build up greater connections between the
suppliers and industry. The paper intends to explore the enablers of strategic sourcing and how
the performance of these sources is measured. The study develops a framework for the
Performance Measurement of Strategic Sourcing process. The research has been undertaken
using the qualitative process which has involved the procurement steps and items have been
listed with implementation of strategic sourcing.
MAINBODY
The purchasing department makes sure that all the materials and services needed by a company
are available at reasonable prices, on time, in quantities sufficient to meet demand, and from
sources that can be relied upon to deliver. In addition, track and management suppliers ensure
the power of our business partners so that they can deliver high-quality products and services on
time. In order to make the right and realistic decisions on time, regarding the purchase of the
required hardware items. The establishing an ethical and legal responsibility chain, matters a lot.
Our suppliers, on the other hand, should meet the highest ethical standards and remain within
legal boundaries so that we can provide assure a reliable supply chain and run business processes
efficiently. Strategy is the art of creativity and it’s the science of winning. Every business has its
own set of strategies through which it competes with other businesses (Cooper, and Ellram,).
For example, a few IT products could be the primary focus of the business and have a
greater impact. Whereas, another option would be a focused strategy that will be further
classified according to the item's priority.

Each business strategy defines buyer behavior, interest and influence. Along with the business
strategy, the environment in which effective purchasing decisions are made is also a vital
fundamental of procurement. A purchasing step must be used to determine what approach best
fits business: its needs and uses in order to get quality products that are market competitively
priced. Differentiate sourcing strategies for IT hardware are used by considering the needs and
capabilities of different channels and levels of categories. The research has been undertaken
using the qualitative process which has involved the procurement steps and items have been
listed with implementation of strategic sourcing.
Road Map & Content
Content
The NHS Procurement process serves as a repository of procedures, steps, instructions, and
guidelines. The communication channel portal enables various stakeholders to engage in
personal procurement activities, either as users or suppliers. In order to discharge their day-to-
day functional needs in an efficient manner with NHS procurement Policy. With the help of
strong and efficient procurement process effectiveness of the various other functions can be

assured. It has been understand that for NHS procurement process services and instruction,
procedure and guidelines in which with the help of taking advantage of various forms of
communication channel day to day functioning efficiency can be enhanced. This will further help
in accomplishing overall objectives of organization along with providing maximum care to
patients. It will also help in enhancing overall consumers need and demand and further helps in
getting higher valid and outcomes. It will also help organization to have strong practices and
policies through which they can enhance the effectiveness of their overall collected resource can
further utilise them for accomplishment of overall growth. Furthermore, it serves the following
objectives which are aligned with the organization's goals (Qazi. and Appolloni, 2022).
 It serves as an effective tool for connecting and integrating departments and suppliers in a
smooth and intelligent application system.
• Ensure that all procurement activities are standardized and consistent.
• Optimize cost reduction across all business units by developing and implementing best
procurement sourcing strategies in collaboration with stakeholders (organization employees,
suppliers, board of directors/owners, government, and other connection factors).
Explain the case study as well as the hardware item quantities needed.
In view of the shared NHS hardware items listed from a total of 5 business units referred
as participants, we notice the volume required by each participant and the total amount spent
(Rane, Narvel, and Bhandarkar, 2019). The IT items needed by the NHS are Standard PC,
desktop, Screen Table, Laptop with accessories. The total cost spent and quantity needed of this
these items by the company are mentioned below-
Name
Standard PC, Desktop or
Tower
Screen
Tablet
Laptop with Accessories
Total
Spen
d
Cost
£
8,900
,500.
00
ProN
E
5,50
0
5,50
0
200
900
LCPH
1,600
1,700
2,000
500
G
M
C
P
H
3
,
7
0
0
HPC
1,500
1,500
10
220

Target (30 years - 2030)
Annual saving
Proposed costs saving
(annually)
4,182
,500.
00
8,600
,000.
00
10,12
2,000
.00
31,8
05,00
0.00
3,000
,000,
000.0
0
100
,000,
000.0
0
32%
3
,
9
0
0
4
,
4
0
0
1
,
7
5
0
The procurement Management department will act in a significant role at collecting all
quantity required. With the aim of cost reduction, economic scale, ensuring high quality, right
delivery, and sustainability. These could be accomplished through well-planned setup, clear

communication, and execution of best practices for sourcing strategies, which could be ensured
through: sustainability, appropriate quantity, quality, and time.
list the potential outsourcing strategies
Sourcing Strategies CIPS
1. Dual Sourcing
2. Ethical Sourcing
3. Global Sourcing
4. Insourcing
5. Low Cost Country Sourcing
6. Multiple Sourcing
7. Outsourcing
8. Single Sourcing and
9. Sole Sourcing.
As per the information presented in the given PDF and documents that many authors and
writers states that there is various sourcing strategy many which help the manager of the
NHS to make effective strategy for their procurement process (Sirbadhoo and Harinarain,
2023). All strategy is mentioned above such as-
Global sourcing- refers to the strategy which include three dimensions such as internal
integration, internationalization along with external integration. It is related with the
international sourcing, in this strategy the management of NHS company need a complex
or big organizational structure to maintain more issues which is caused by long
transportation distance, cultural differences, inadequate cost and many more.
Impact strategic sourcing-
.