Sourcing strategy

In the midst of a rapid global expansion, a large telecommunications company in the Middle East urgently needed to develop a supply chain with a global footprint to support its growth while managing escalating costs.

The company reached out to Strategy& to create a new vision for the supply chain: Specifically, it sought a strategy and design for a collaborative sourcing approach, with unique ways of partnering with the supply base to manage costs while stimulating innovation. A key requirement was to develop a scalable solution that would foster increased collaboration both internally and externally, aligning supply chain planning processes to facilitate the execution of the company’s strategic plans. The collaborative sourcing strategy identified important spending areas that aligned with the company’s strategic initiatives, with initial cost savings identification of 9 to 14 percent of total spending.

Strategy& used a holistic approach to performance management and capabilities development that was instrumental in advancing the project.