Strategic Sourcing Analyzer
Overview
The Strategic Sourcing Analyzer provides comprehensive analytical capabilities for strategic sourcing initiatives. It supports spend analysis, market assessment, strategy development, and savings opportunity identification to drive procurement value creation.
Capabilities
- Spend Cube Analysis: Multi-dimensional spend analysis by supplier, category, business unit
- Pareto and ABC Classification: Prioritize categories and suppliers by spend
- Market Structure Analysis: Assess supply market dynamics and competition
- Porter's Five Forces: Category-level competitive analysis
- Sourcing Strategy Recommendations: Data-driven strategy development
- Wave Planning and Prioritization: Sequence sourcing initiatives
- Savings Opportunity Identification: Quantify addressable spend and potential savings
- Make vs. Buy Analysis: Support insource/outsource decisions
Input Schema
sourcing_analysis_request:
spend_data: object
- supplier: string
category: string
business_unit: string
amount: float
period: string
market_data: object
- category: string
supplier_count: integer
market_size: float
growth_rate: float
current_contracts: array
strategic_priorities: object
analysis_scope: array[string]
Output Schema
sourcing_analysis_output:
spend_analysis:
spend_cube: object
pareto_analysis: object
abc_classification: object
market_assessment:
five_forces: object
market_structure: object
supplier_landscape: object
strategy_recommendations: array
- category: string
strategy: string
rationale: string
savings_potential: float
wave_plan: array
make_buy_recommendations: array
Usage
Category Spend Analysis
Input: 2 years of AP spend data, supplier master
Process: Cleanse, classify, aggregate into spend cube
Output: Category spend profile with supplier concentration
Market Assessment
Input: Category definition, supplier list, market research
Process: Apply Five Forces framework, assess market dynamics
Output: Market attractiveness and sourcing implications
Sourcing Strategy Development
Input: Spend analysis, market assessment, business requirements
Process: Apply Kraljic Matrix, develop category strategies
Output: Recommended sourcing approach by category
Integration Points
- Spend Analytics Platforms: Coupa, SAP Ariba, Jaggaer
- Market Research: Industry databases, market intelligence services
- ERP Systems: AP data, supplier master data
- Tools/Libraries: Data analysis frameworks, visualization tools
Process Dependencies
- Strategic Sourcing Initiative
- Category Management
- Spend Analysis and Savings Identification
Best Practices
- Ensure spend data quality before analysis
- Use consistent category taxonomy
- Validate market assumptions with subject matter experts
- Document strategy rationale for stakeholder alignment
- Track realized savings against projections
- Update analysis annually at minimum