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Diane Publishing Books
Strategic Sourcing: Improved and Expanded Use Could Save Billions in Annual Procurement Costs
Cristina Chaplain (au)
GAO has reported that the government is not fully leveraging its aggregate buying power, and that strategic sourcing, a process that moves a company away from numerous individual procurements to a broader aggregate approach, allowed companies to achieve savings of 10-20%. A similar savings rate applied to the federal procurement budget would equal more than $50 billion dollars. In 2005, the Office of Mngt. and Budget (OMB) directed agencies to use strategic sourcing and established the Fed. Strategic Sourcing Initiative (FSSI) program to manage governmentwide efforts. This report assessed (1) the extent to which selected agencies managed spending and achieved savings through strategic sourcing; (2) key challenges selected agency and FSSI officials face in strategically sourcing products and services; and (3) the extent to which the FSSI program managed spending and achieved savings through strategic sourcing. Tables and figures. This is a print on demand report.
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