Commercial Sourcing

A pragmatic approach to rapidly deliver significant cost reduction in complex spend categories

Commercial Sourcing targets known category levers to maximise value captured, with equal emphasis on price and usage. It combines data analysis with insights from procurement and operations stakeholders to identify and deliver improvements. This accelerates delivery of savings, with first returns 1-2 months faster than traditional Strategic Sourcing approaches. Our experience shows cost savings of 10-38% are possible over a typical 12-16 week engagement.

PIP’s agile Commercial Sourcing approach:

  • We conduct a rapid diagnostic of your supply base, existing market and contractual conditions
  • Categories are prioritised based on overall spend and savings potential
  • We use our knowledge of category levers to create initial hypotheses that can be tested with your procurement and operations stakeholders
  • Together, we approach the market, negotiate new pricing and terms, implement improvement initiatives, and drive savings to the bottom line
  • We ensure that benefits are protected by establishing sustaining disciplines and processes, using our sustainability toolkit

Capability development is a key feature of all our engagements which enables clients to maximise ongoing benefits.  

We tried to implement a similar strategic sourcing programme three years ago. Everyone agreed to the programme goal but nothing happened. But when PIP walked in, it helped us make the commercial sourcing programme happen and deliver the targeted savings.CPO

Meet our Commercial Sourcing expert