Sourcing Process
From Cost Center to Value Creator
Sourcing (Procurement) is a team sport. Success in sourcing does not depend on Procurement alone – it requires alignment across Operations, Finance, Sales, Customer Service, OHSE, and other business functions. When everyone understands how sourcing decisions are made, why they matter, and how they impact the wider business, collaboration becomes smoother and outcomes stronger.
Why This Module Matters
Sourcing, Procurement, Purchasing, Supply Chain – titles may differ, but the mission is the same: ensuring reliable, cost-effective supply of products and services critical to business success.
While sourcing has evolved into a strategic function, many still see it through outdated clichés: comparing two suppliers, picking the lowest price, and negotiating discounts later. In reality, effective sourcing is a structured process that balances cost, risk, value, and supplier partnerships.
Who Should Attend
This module is designed for:
Business stakeholders – cross-functional partners deepen their understanding of sourcing’s role, responsibilities, and challenges, improving collaboration and alignment.
Sourcing / Procurement / Supply Chain professionals – newcomers gain a solid foundation in key concepts and models, while experienced practitioners refresh their knowledge and expand their toolkit.
What You Will Learn
This training module equips both sourcing specialists and cross-functional stakeholders with a clear, practical framework for the sourcing process. Participants learn not only the structured 5-step process application – from fact base development to supplier management – but also how their own function contributes to building stronger supplier relationships, reducing risk, and creating sustainable value for the business.
Improve collaboration and decision-making
Learn how sourcing strengthens cross-functional cooperation and drives smarter business choices.
Master the 4 core steps before supplier selection
Understand the structured process leading up to supplier evaluation and contracting.
Ensure lasting value through supplier management
Apply tools and practices for effective post-contract supplier relationship management.
Understand Procurement’s dual role
See how Procurement functions both as an internal customer and as an internal supplier, working closely with Operations, Finance, Sales, Customer Service, OHSE, and other teams.
How the Module Works (Sample Agenda)
The 5 Steps Sourcing Process training provides a clear, practical framework:
- Steps 1–4 cover the core activities leading up to supplier selection and contracting.
- Step 5 focuses on ongoing supplier management, ensuring lasting value beyond the contract.
Delivered over 2.5 days, the program combines proven frameworks with hands-on exercises and role plays to ensure immediate applicability.
Day 1 – Step 1: Fact Base Development
- Category profiling, demand forecasting, spend analysis
- Core concepts: Total Cost of Ownership (TCO) and Clean Sheet
- Practical exercise: sourcing challenges in the “North Sea Oil” case study
Day 2 – Steps 2 and 3: Industry Analysis and Strategy Development
- Tools: Kraljic Matrix, Porter’s 5 Forces, supplier evaluation templates
- Exercise: “Building the Pipeline” – role play as buyers and sellers
- Developing sourcing strategies aligned with business goals
- Exploring Make vs. Buy, risk management, and value-adding supplier relationships
Day 3 – Steps 4 and 5: Strategy Execution and Supplier Management
- Team presentations of sourcing strategies developed during the program
- RFx design, contracting for performance, leveraging supplier insights in negotiation
- Supplier management frameworks and tools
- Exercises: crisis management simulation, supplier performance evaluation