I interviewed Vladislav Mandryka who discussed Recent Trends in Strategic Sourcing.
It’s great to speak with you today, Vladislav. This is going to be an interesting topic on strategic sourcing. My first question is, can you describe what is strategic sourcing?
First of all, Justin, thank you for the invitation to the an interview. I suppose that our talk will be interesting for procurement professionals. Strategic sourcing in general point of view is a process of systematic collection and evaluation of external and internal data. Why we need it? We need it to design the efficient sourcing strategy. And we can design the exact sourcing strategy when we carefully analyze our internal data; including specifications and conduct the market analysis . Currently, as you can see, there is a high volatility on the commodity markets. And a main aim of strategic sourcing approach is to define the strategic suppliers, I mean our partners, in order to implement the most suitable sourcing strategy with them. It should be a strategic partnership. So the main task of strategic sourcing is to define the right strategy and implement it with the strategic supplier. Shortly I can describe it like this.
And then so who should care about this the most? Who cares about strategic sourcing?
Well, strategic sourcing requires effective interaction between your procurement team and your internal customer, your stakeholders and in fact with decision-makers. It can be used in the first stage when we analyze the commodity category and provide the market analysis. And it can be used during further stage when we implement the operational strategy.
Oh great. So my next question then is, where have you seen some good results?
Well, currently strategic sourcing approach used most of companies from Fortune 500’s, like Pepsico, like SABMiller, Bethlehem Steel and so on. Firstly, this approach was launched and successfully implemented in the mid-90’s, and currently most of Western Europe companies use it. And in fact, they receive from 5 to 10 percent of realized savings. It is very good figures in terms of high volatility on commodity market, as I mentioned.
And can you provide a brief background of yourself?
OK. Speaking about me, I have broad experience in the procurement. I work as procurement during last ten years. They are mostly multinational companies, big companies like my specialties are strategic sourcing, cost analysis and spent management. I have a master’s degree in Business Administration in the Open university business school.
And thanks for sharing today on the topic of strategic sourcing.
Thank you again for the invitation. I hope that this topic will be interesting and I’m ready for the discussion if supply chain and procurement professional will be interested in this topic.
I’ll be sharing this on LinkedIn groups related to supply chain, and also on our blog, that connects to the supply chain expert community. So hopefully we’ll get some discussions.
Senior Procurement Specialist at Anadolu Efes, MBA