How Strategic Sourcing Reduces Spend in the Food and Beverage Industry

The food and beverage industry is a massive one, especially in North America. According to the United States Department of Agriculture (USDA), in 2019, U.S. consumers, businesses, and government agencies spent $1.77 trillion on food and beverages in grocery stores and other retailers. Generally speaking, food and beverage prices remain fairly stable, increasing just 2.3% […]

Have You Made Your Material Sourcing Plan?

Many companies are content with employing a reactive sourcing strategy. When material sourcing, their procurement team responds to requirements from the business side of the operation as they arise. That’s fine—sourcing professionals have the expertise to deal with this common scenario—but is it the best way to be doing things? That is debatable.  Actually, it’s […]

3 Ways Arkestro Removes Strategic Sourcing and Procurement Stress

It doesn’t matter what kind of business or organization you work for; if you’re part of the sourcing process, you’re working under pressure. Strategic sourcing stress is caused by day-to-day occurrences and manual process. Let’s leave strategic pressure aside for the moment, where we’re dealing with big picture stuff, and instead focus on day-to-day stresses. […]

4 Major Types of Sourcing Strategies in the Construction Industry

The construction industry encompasses many unique challenges, particularly in sourcing materials for their complex projects. From building a single custom home to being responsible for an extensive housing development or a towering skyscraper, much of the success (and the profitability) of a construction project rests on the shoulders of the team responsible for sourcing the […]

3 Ways Arkestro Can Assist Your Automotive Sourcing Strategy

Automotive sourcing strategy is complicated, and few supply chains are as complex. Auto manufacturing embodies globalization, with assembly plants located across the world and many of them working on a just-in-time basis.  According to Toyota, the average new vehicle contains over 30,000 parts, ranging from tiny screws to highly sophisticated computer chips. Producing those thousands […]

3 Reasons Understanding Your Suppliers Better Will Benefit Your Sourcing

Supplier relationships are your new competitive advantage All businesses face extraordinary challenges in 2020. The fallout from an ongoing COVID-19 pandemic has put financial pressure on companies, resulting in cost-cutting across the board. In addition, the epidemic has severely disrupted supply chains. When critical raw materials and components are unavailable or in short supply, prices […]

3 Ways to Measure Predictive Procurement Success Beyond Cost Savings

There was a time when a company’s procurement function was largely left out of the loop and taken for granted. Once other business units had made the meaningful decisions, then it was up to the sourcing team to look after the mundane tasks of contacting suppliers and signing contracts.  A 2019 Harvard Business Review report […]

3 Ways Pricing Transparency Drives Strategic Sourcing Success

In 2005, Harvard Business Review published “Strategic Sourcing: From Periphery to the Core.” The article was an overview of the changing dynamic in an increasingly global world, where companies were moving away from the traditional business model of vertical integration. The authors wrote: “For years, ‘sourcing’ has been just another word for procurement—a financially material, but […]

5 Benefits of Strong Relationships in Strategic Sourcing

Happy  International Day of Friendship! As a holiday officially recognized by the United Nations, the idea of a World Friendship Day was first proposed in 1958  by Dr. Ramon Artemio Bracho during a dinner with friends in Paraguay. Out of this meeting of friends, the World Friendship Crusade was born. World Friendship Crusade is a […]

Sourcing Automation vs. AI in Strategic Sourcing

There are many buzzwords regularly tossed around in this age of tech-based startups and digital transformation. Two such phrases are “Automation” and “Artificial Intelligence” (AI). It’s common to mix up the two, lump them together, or otherwise muddy the water of what is already a complex relationship between the terms. You’ve heard it, you think […]