Corcentric provides clients with innovative Sourcing and Procurement Services. Through these supply chain services, we help companies achieve cost savings and improved supplier relationships. We offer a variety of value-added services, including Category Management, Contingency Based Cost Reduction, Contracting, Negotiations, Strategic Sourcing Services, and more.

Understand the minute differences between Sourcing, Purchasing, and Procurement before you delve into the strategic sourcing and procurement consulting services we provide. Learn how understanding the differences between the closely related functions can help you manage your Source-to-Pay process better.

What is Sourcing and Procurement?

Sourcing and procurement are two terms that often get mixed up. But although the terms “sourcing” and “procurement” are sometimes used interchangeably, they are two entirely different matters.

What is Sourcing?

Sourcing is part of the Procurement process. It is the process of seeking, evaluating, and engaging suppliers based on the business’s needs. Through a stringent and strategic supplier selection, the business will be able to maximize cost savings based on the best value provided. Following are the six steps to creating a strategic sourcing process.

• Step 1: Analyze Your Business’s Needs and Requirements

  The first step to creating a sound sourcing process is to know and understand your business’s needs and requirements. You need to know your budget, understand your current spending, and understand what your business needs to operate.

• Step 2: Identify Potential Vendors

  The second step in the Sourcing process is to analyze potential suppliers. This is a vital stage, where it is essential to consider more than just cost when selecting an suitable provider. You should also take into account their reputation and track record, plus any associated risks and opportunities that may arise from working with them.

  Once you have identified a list of potential vendors, it is important to create a portfolio. This will be your go-to resource if any issues or disruptions emerge with your chosen vendor. By having a portfolio of potential vendors, you’ll be able to select an alternative option quickly should problems arise with the vendor you’ve chosen.

• Step 3: Create an Effective Sourcing Strategy

  The next step is to create an effective sourcing strategy. Depending on your overall business goals, budget, and objective, you may want to consider how you want to make your purchase. And depending on your budget and resources, you may want to look at making a direct purchase or creating a strategic partnership with your selected vendor.

• Step 4: Go to Market with Your Plan

  Once you have created your portfolio of suppliers, it’s time to contact them and set things in motion. You will not only need to build new contracts and supplier relationships but also negotiate for the best possible agreement that benefits both parties. You may also need to inform existing suppliers of your decision to ensure clear and transparent communication.

• Step 5: Contract Creation

  This stage of the sourcing process is mainly about creating contracts and signing the dotted lines for everything discussed in the previous step. Both parties would need to put the agreed upon terms of negotiation onto paper and execute the contract.

• Step 6: Onboarding Your New Suppliers

  The final step of the sourcing process is the fruition of the above legwork. It includes bringing your new vendors on board and implementing the new process. Once implemented, the results will need to be monitored to ensure that KPIs on both sides are fulfilled. Should you identify any issues or areas of improvement, open communication between both parties is advised to bring about a resolution.

View the chart below for a simplified step-by-step explanation of the Sourcing process.

What is Purchasing?

Purchasing is what comes after Sourcing. Once the Sourcing team has successfully sourced the best possible options of vendors and suppliers and negotiated the best potential contract that benefits both parties, it is time for the Purchasing team to step in.

The Purchasing team will be in charge of procuring goods for the company based on the business’s needs. They will be in charge of ensuring steady input and output and ensuring that the supply chain runs smoothly.

What is Procurement?

The next question to tackle then is: what is Procurement? The first thing to understand is that although the terms “procurement” and “purchasing” are often used interchangeably, Procurement and Purchasing are two different matters.

Procurement is the function that encompasses Sourcing and Purchasing. This means that Sourcing and Purchasing are part of the Procurement process. For a clear picture of how Procurement and Purchasing are related, take a look at the chart below.

What is the Difference between Sourcing, Purchasing, and Procurement

Purchasing and Sourcing are both parts of the Procurement process. Although the terms “Procurement” and “Sourcing” are used interchangeably within a business, they refer to different matters.

Sourcing professionals are the Procurement team’s strategists whose role includes sourcing and identifying potential suppliers based on the company’s budget, needs, and objectives.

Once the Sourcing team has fulfilled its part, the Purchasing team will be next in line. The Purchasing team will be in direct contact with the suppliers and be responsible for the procurement of goods and services for the business.

Corcentric Procurement Services Overview

With unmatched industry experience and a rich history of developing procurement best practices and processes, Corcentric has helped many organizations attain billions of dollars in savings in both direct and indirect spend categories. We are committed to fostering efficiency, responsiveness, and flexibility in our clients’ supply chains and ultimately delivering impactful and sustainable results.

Learn more about Corcentric’s premier end-to-end procurement outsourcing offerings.

Category Management

In order to execute a successful sourcing project, it is essential to have an extensive knowledge of the spend category under consideration. At Corcentric, our team of experts is well-versed and experienced in all facets of category management. Our professionals have category-specific knowledge in areas such as IT, Telecom, Marketing, Finance, HR, Freight/Logistics, MRO, Utilities, and many more.

Learn more about our firm’s expertise in Category Management.

Contingency-Based Cost Reduction

Corcentric provides clients with a wide variety of fee options in exchange for our strategic sourcing services. While flat-rate, fee for service options are available, we also offer an unprecedented contingency-based billing solution. With our unique contingency plan, our clients do not pay us until hard-dollar savings are achieved through our best-in-class sourcing initiatives. In addition, we offer hybrid billing solutions to fit the needs of virtually any potential client.

Find out how Corcentric’s contingency-based cost reduction services offer you a no-risk, high-reward solution.

Contracting & Negotiations

Since we opened our doors, Corcentric has successfully negotiated thousands of contracts. Additionally, we have amassed an extensive archive of contract terms and price points that can be used to achieve savings quickly. By leveraging market intelligence, we can help our clients achieve positive negotiation results that benefit both the buyers and the suppliers.

Read more about Corcentric’s skills in contracting and negotiations for best-in-class terms and conditions.

Contractors (On-Site Temp Staffing)

Corcentric provides temporary staffing to aid with procurement and supply chain projects of various scales. We offer a wide array of on-demand staffing and BPO solutions, and deliver knowledgeable and experienced sourcing professionals to match all of our clients’ unique needs.

Click to learn more about Corcentric’s temporary labor solutions for supply chain, procurement, and strategic sourcing.

Low Cost Country and Nearshoring

We can help your business to procure items that are produced either domestically or by low-cost country suppliers. In fact, through our far-reaching network of partners, Corcentric offers locations in many low cost countries, including India, China, Spain, and the United Kingdom. Furthermore, we have vast experience in Near-Shore procurement, utilizing resources in Canada, Mexico, Brazil, and other close-proximity countries.

Find out more about our International and Near-Shore procurement offerings.

Sourcing & Procurement Outsourcing

At Corcentric, we can help your company to more effectively source materials and services by outsourcing the procurement process. We are able to relieve the pressure on your in-house purchasing staff to more quickly and efficiently achieve savings. Corcentric can provide scalable, cutting-edge procurement solutions to eliminate long-term fixed costs and meet the needs of any client.

Learn more about how Corcentric can help you outsource your procurement processes.

Staffing and Recruiting Services

Corcentric is equipped to offer an array of recruiting solutions to replace or bolster your existing procurement resources. Whether on a temporary or permanent basis, our staffing services provide the right candidates for any supply chain, sourcing, or procurement job.

Discover how Corcentric can assist you with your Staffing and Recruiting needs.

Strategic Sourcing Overview

Corcentric is committed to helping our clients achieve savings quickly, while also improving all qualitative aspects of the procurement process. We take a strategic approach to sourcing, harnessing our unique skills and experience to optimize the profitability and sustainability of our clients’ supply chains. Our services include custom industry benchmarking, supplier identification, RFx management, contracting, etc.

Continue reading about strategic sourcing, and how Corcentric can help you to achieve maximum savings.