What benefit will Strategic Sourcing provide, and to who?

The federal government spends approximately $300 billion annually on goods and services to support agency missions. It is estimated that agencies spend in excess of $43 billion on cell phones, copiers, office supplies, express delivery services and IT hardware. According to the Office of Management and Budget (OMB), "Strategic sourcing has more potential for taxpayer savings than any other initiative."

The benefits of Strategic Sourcing go beyond price savings to reduction in total cost of ownership: • Reduction in Cost Per Unit • Pricing improvements • Supply chain savings • Reduced lifecycle costs • Change in Consumption Volume • Demand management • Specification review • Improved Operating Efficiency • Reduced Procurement and Non-Procurement Related Operating Expenses • Performance Monitoring • Improved Supply Chain Management • Socioeconomic goals (structured analysis of small/disadvantaged business opportunities) • Optimized supplier relationships There are dollar savings and ... more.

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