Strategic Sourcing Overview

Zikhara Solutions is committed to helping clients achieve quick savings while enhancing the overall procurement process. Our strategic sourcing approach includes custom benchmarking, supplier identification, RFx management, and contracting to optimize supply chain profitability and sustainability

Sourcing and Procurement Services

Zikhara Solutions provides clients with innovative sourcing and procurement services. Through these supply chain solutions, we help companies achieve cost savings and improve supplier relationships. Our offerings include a variety of value-added services, such as Category Management, Contingency-Based Cost Reduction, Contracting, Negotiations, and Strategic Sourcing Services.

Understanding Sourcing and Procurement

While “sourcing” and “procurement” are often used interchangeably, they refer to different aspects of the supply chain process. Understanding the distinctions between these functions can enhance the management of your Source-to-Pay process.

What is Sourcing?

Sourcing is a critical part of the procurement process that involves seeking, evaluating, and engaging suppliers based on business needs. A strategic supplier selection helps maximize cost savings and value. Here are the six steps to creating an effective sourcing process:

1. Analyze Your Business’s Needs and Requirements: Understand your budget, current spending, and operational needs.
2. Identify Potential Vendors: Evaluate suppliers based on cost, reputation, and associated risks. Create a portfolio of potential vendors for quick alternatives if needed.
3. Create an Effective Sourcing Strategy: Develop a strategy that aligns with your business goals, considering whether to make direct purchases or establish strategic partnerships.
4. Go to Market with Your Plan: Contact selected suppliers, negotiate agreements, and ensure clear communication with existing suppliers.
5. Contract Creation: Draft and finalize contracts based on negotiated terms.
6. Onboarding Your New Suppliers: Implement the new processes, monitor results, and maintain open communication to address any issues.

What is Purchasing?

Purchasing follows sourcing. Once the sourcing team identifies and negotiates with suppliers, the purchasing team procures the goods needed for the company, ensuring a smooth supply chain.

What is Procurement?

Procurement encompasses both sourcing and purchasing. It involves the overall management of acquiring goods and services, integrating both functions to optimize the supply chain.

The Difference Between Sourcing, Purchasing, and Procurement

While sourcing and purchasing are components of the procurement process, they serve distinct roles. Sourcing focuses on identifying suppliers and strategic partnerships, while purchasing manages the actual acquisition of goods and services.

Zikhara Solutions Procurement Services Overview

With extensive industry experience and a proven history of developing procurement best practices, Zikhara Solutions has helped organizations achieve significant savings across direct and indirect spending categories. We are dedicated to enhancing efficiency and flexibility in our clients’ supply chains, delivering impactful results.

Our Key Offerings Include:

• Category Management: Our experts have in-depth knowledge across various categories, such as IT, Telecom, Marketing, Finance, and more.
• Contingency-Based Cost Reduction: We offer flexible fee options, including a unique contingency plan where clients pay only when savings are realized.
• Contracting & Negotiations: With a wealth of experience in negotiating contracts, we leverage market intelligence to achieve favorable terms for our clients.
• Temporary Staffing: Zikhara Solutions provides on-demand staffing to support procurement and supply chain projects, delivering experienced professionals to meet client needs.
• Low Cost Country and Nearshoring: We assist in procuring items produced domestically or by suppliers in low-cost countries, leveraging our extensive network.
• Sourcing & Procurement Outsourcing: We can help you effectively source materials and services by outsourcing your procurement processes, alleviating pressure on in-house teams.
• Staffing and Recruiting Services: Our recruiting solutions help you find the right candidates for supply chain, sourcing, or procurement roles, whether on a temporary or permanent basis.