The process begins with analyzing business needs and historical spending, followed by outlining a strategic plan, and then conducting data collection and market analysis that guides selection of a roster of suppliers. A sourcing plan can instead allow them to develop an adaptable system that contributes to the overall value of the business long term. How it worksīusinesses can use strategic sourcing to make their procurement processes less shortsighted and focused on price. Strategic sourcing differs from conventional purchasing because it places emphasis beyond initial purchase price to focus on total cost of ownership and optimizing the sourcing process through ongoing market analysis and building relationships with suppliers. It requires analysis of what an organization buys, from whom, at what price and at what volume. Strategic sourcing is growing in popularity, as digital transformation is causing procurement and supply chain processes to evolve. The department uses the Q-Tenders system (available on the Queensland Government Marketplace) to advertise and manage invitations to offer and disclose contracts awarded (over $10,000).Strategic sourcing is an approach to supply chain management that formalizes the way information is gathered and used so an organization can use its consolidated purchasing power to find the best possible values in the marketplace and align its purchasing strategy to business goals. Predetermined evaluation criteria are used to select successful offers. When selecting the appropriate sourcing strategy the department considers the outcomes of risk, demand and supply market analysis.

They are subject to ongoing review and amended when required. They are consistent with the government's framework, and allow Transport and Main Roads’ procurement to align with the department’s business needs. Suppliers can access the Queensland Procurement Policy and other useful reference information on the Queensland Government Procurement site.ĭepartmental procurement processes are in place to guide departmental officers through procurement activities and support the principles of the Queensland Procurement Policy.

The way the department purchases is guided by the Queensland Procurement Policy.

To manage this it operates a centre-led procurement model (meaning governance, planning, reporting are determined by a centre of procurement experts and the hands-on buying is undertaken by the local areas). The Department of Transport and Main Roads is a significant purchaser of goods and services for the Queensland Government.

Ariba strategic sourcing