You will now identify high-level opportunities. This will be based on data gathered in the previous stages, which may be achieved with or without creating a new contract.
Strategic sourcing highlights opportunities in three key areas:
The above are portrayed as the three sides of the 'Best Value Triangle'
Your commodity/service team should assess and highlight the potential opportunities on the triangle that could be further developed. The team should determine how they could be applied to the commodity/service in question. Risk should always be considered.
Your assessment of high-level opportunities should be carried out in with the Sustainable Procurement Test (as previously identified for the requirement).
This exercise should be proportionate to the complexity of your requirement. You are not expected to address every aspect of the best value triangle.
Early opportunities are defined as cost savings, sustainability opportunities or total cost improvements which:
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.