Sourcing Optimization
Becoming a better shopper

The Challenge
Organizations constantly face the "make-buy" decision. One of the most common decisions is whether to manufacture the product in-house or use subcontractors. But, the "make-buy" decision is more pervasive. Every employee represents an implicit decision to "insource" since viable third-party alternatives exist for HR, R&D, facilities, computer support, marketing, sales and so on. Furthermore, every check written to a third party is an implicit decision to "outsource." Selecting the right mix of "insourcing" and "outsourcing" will provide the optimum balance of tradeoffs - costs, service level, quality level, flexibility, executive focus, and implementation costs/time.

The Solution
Accèvero Group can help your organization find that right mix. Typical activities in a sourcing client project include:

  • Reviewing key expenditures by category (e.g., R&D payroll, manufacturing payroll, cafeteria expenditures, computer support contracts)
  • Identifying a short-list of expenditure categories that influence company success the most
  • Evaluating the "make-buy" decision based on critical parameters (e.g., cost, service, quality, risk)
  • Evaluating alternative vendors when the decision to "outsource" makes the most sense
  • Implementing the insource or outsource decision

Projects are always custom-tailored and, depending on client needs, can range in scope from a detailed analysis of many expenditure categories and implementation of changes to a "quick and dirty" analysis on one or two key areas. Review a case study or contact us about your specific needs.

The Benefits
Client benefits can include:

  • Determination of which areas should be "core competencies" and which areas are best left to outside organizations
  • Implementation of the lowest cost option or consciously implementing a more expensive solution for other reasons such as service level, quality, or flexibility