Monday, July 27, 2009

Sourcing Journey - Trip to Paradise or Hell?

These days, almost every organization, if not already sourcing, is in the middle of a sourcing transaction or at least planning one. It’s a matter of survival. Expectations are high for the end results and everyone is anxious to just get to the end game so the cost savings can kick in.

Yet, horror stories abound about bad deals, service providers who don’t live up to expectations, and expensive consultants who impose complicated, time consuming bid processes – business cases that sound great at the outset and then dissolve into out of control cost escalation two years into the deal. No matter what savings are promised, are you ready to put your organization through this?

How do you know if sourcing is right for you? Will sourcing be a quick fix that you’ll later regret? Can your team pull it off? How long should it take? How do you avoid the pitfalls that lead to costly mistakes, heavy upfront expenses and miserable deals? Those questions and more are important to contemplate before entering what could be a daunting project.

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