ⓘ Sourcing advisory

                                     

ⓘ Sourcing advisory

Sourcing advisory is the use of third-party advice during the sourcing process. As such, it may refer to advice sought during outsourcing, offshoring or global sourcing.

                                     

1. Sourcing advisors

Given the strategic nature of the advisory and the prevalence of sourcing amongst global organizations, most management consulting firms today offer sourcing advisory services. In addition, there exist a host of specialized sourcing advisory firms that focus on providing sourcing advisory and research inputs to the industry. Sourcing advisors can also be independent freelance consultants.

In recent years software tools to automate sourcing advisory emerged. Building on Software as a Service SaaS, the trade mark "Sourcing Advisory as a Service" SAaaS is used in the market.

                                     

2. Services

The range of services provided by sourcing advisory firms include:

  • Advising buyers through stages of the outsourcing transaction
  • Helping buyers manage established outsourcing relationships in issues such as governance and change management; improve sourcing contracts
  • Support escalation management
  • Execution of operational audits with the aim of project recovery
  • Research relevant to the sourcing industry
  • Helping buyers re-negotiate or renew transactions
  • Helping buyers identify functions to be outsourced or offshored sourcing opportunity areas, shoring strategy
  • Helping buyers identify and evaluate capable suppliers provider selection