Evaluate and Develop a Sourcing Strategy
4.2.1 Consolidate Understanding of Commodity
4.2.2 Risk Analysis
4.2.3 Total Cost of Ownership Analysis
4.2.4 Opportunity Analysis and Ideas Generation
4.2.5 Evaluate and Develop a Sourcing Strategy
4.2.6 Identifying the Desired Supplier Relationship
4.2.7 Strategy Suitability Assessment
4.2.8 Define Evaluation and Award Criteria
4.2.9 Prepare Business Case
Here the project team analyses and interprets all the information gathered. This is usually grouped under the following headings:
  • Supplier characteristics
  • Commodity characteristics
  • Spend information
The objective is to consolidate all the information gathered, to identify possible risks associated with the project/commodity and to calculate the total cost of ownership.
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