The objective of this stage is to identify high-level opportunities based on the data gathered in the previous stages which may be achieved with or without the creation of a contract.
Strategic sourcing highlights opportunities in three key areas:
The above are portrayed as the three sides of the 'Best value triangle'. For each of the potential opportunities on the triangle, the commodity team should assess and highlight those opportunities that could be exploited and determine how they could be applied to the commodity in question, bearing in mind any risk assessment considerations.
The assessment of high-level opportunities should be carried out in conjunction with the Sustainable procurement test previously identified for the requirement.
A blank Best value triangle is provided for your use. Alternatively you may wish to use the tabled version of the triangle. Sustainability opportunities should also be captured for inclusion in your strategy.
This exercise should be proportionate to the complexity of your requirement and you are not always expected to address every aspect of the best value triangle.
Checkpoint - are there early opportunities?
Early Opportunities are defined as cost savings or total cost improvements which:
Opportunity Assessment
There are many factors to consider for implementation of all opportunities as well as early opportunities:
The opportunity assessment template is an aid to quantifying and prioritising the opportunities which will be included in the commodity strategy.
Any documents you need are available here
Sustainability opportunities template
Opportunity assessment template
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