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Model based Strategic Sourcing

Laleh Rafati & Geert Poels

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Strategic Sourcing Orientations & Decisions

sso

Learning- Make or Buy decision

- Choosing right sourcing alternatives

Performance- Determining how much cost

spent, with whom, and for what

- Determining how much value is perceived or captured

Planning- Identifying sourcing

objectives- Aligning sourcing objectives with long term organizational

goals

Relationship- Selection suppliers

- Finding new customers - Evaluation supplier

performance

Purchasing Manager

Contract Manager

Capability Sourcing Analyst

Category Manager

Product Manager

Chief Procurement Officer

Chief Strategy Officer

Strategic Sourcing Manager

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Spend Management

Sourcing Management

Supplier Selection

Contract Management

Relational Management

SAP

Accounts PayableERP

Purchasing Cards

eProcurement

eSourcing

GL account

Online RFx

e-Auctions

Spend Data

Sourcing Data Contract Data

Supplier Data Performance Data

Fact based Decision Making

Application Layer

Process Layer

Data Layer

Analytics Layer

Decision Layer

Spend analysis

Market analysis

Demand analysis Risk analysis Value chain analysis

Descriptive Diagnostic Predictive Prescriptive

Data (Acquiring)

Insights (Analyzing )

Act (Acting )

Chief Procurement Officer (CPO)

Performance analysis Capability analysis

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Spend Management

Sourcing Management

Supplier Selection

Contract Management

Relational Management

SAP

Accounts PayableERP

Purchasing Cards

eProcurement

eSourcing

GL account

Online RFx

e-Auctions

Spend Data

Sourcing Data Contract Data

Supplier Data Performance Data

Fact based Decision Making

Application Layer

Process Layer

Data Layer

Analytics Layer

Decision Layer

Spend analysis Market analysis Risk analysis

Value chain analysis Demand analysis

Descriptive Diagnostic Predictive Prescriptive

Chief Procurement Officer (CPO)

disparate nature of systems and data sources

Non-automated Processes

lack of data centralization, integration, standardization

lack of advanced techniques, softwares, skills

lack of visualization techniques

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Research Objectives

Objective 1: a holistic view on strategic sourcing

Objective 2: a conceptual basis for centralization of procurement data

Objective 3: a conceptual basis for systemic exploration of strategic sourcing alternatives

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Service-Dominant Conceptual Modeling

1. Service ecosystem perspective as a holistic view on strategic sourcing orientations

2. Strategic sourcing conceptualization for procurement data modeling 3. Conceptual modeling as a way of exploring strategic sourcing

alternatives

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Solution Approach

Seligmann et al., 1989Analyzing the structure of IS methodologies, an alternative approach

Way of Thinking

Way of Modeling Way of Working

Way of Supporting

principles

viewpoints & conceptualization model-based exploration

model-based analytical techniques and tools

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Way of Thinking: Service ecoSystem

Capability

Resource Competency

Competitiveness or Surviving Profitability or Viability

Supply Network Members

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Way of Modeling: Conceptualization & Viewpoints

What the actor Can doWho is the Actor

What the actor Has

What the actor Does

C.A.R.S

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Way of Working: Model based Exploration

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Value Creation View

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Capability Sourcing View

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Supply Base View

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Resource Based View

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Way of Supporting: model based analytical tools

• e.g. Business Architecture (BA) software tools

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to manage

to model

to visualize

to inject

to ex

tract

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Thanks for your attention