Strategic Sourcing

Nitor has generated over $200 Million of measurable and realized savings for clients through Strategic Sourcing projects. Category savings typically range from 5-30% depending on the specific category and current state environment. Nitor’s Strategic Sourcing projects not only create a more efficient environment but also enable a self-funding approach to broader Procurement Transformation.

Nitor has helped clients identify and deliver Strategic Sourcing projects in both direct and indirect categories across various industry verticals including; automotive, financial services, food service retail, government sector, medical, oil & gas, retail, telecom and transportation.

Nitor’s five-stage Strategic Sourcing process is a structured sequential approach, based on Six Sigma principles, to the procurement of goods and services and the management of the value delivered.

5 Stage Strategic Sourcing Process

Nitor takes a holistic approach to Strategic Sourcing not only to drive cost savings but also to align with business needs to improve performance across quality, delivery and service. Nitor does not “scorch the earth” and negatively impact the non-cost aspects of a category. Instead a holistic approach drives business stakeholder buy-in, ensures sustainable value is delivered and enables knowledge transfer of world-class sourcing.

Depending on the category need, Nitor uses a variety of sourcing strategies to be pursued independently or as a layered approach to drive value:

  • Leverage – Price focused aggregation approach
  • Supply Base Changes – Broader value focused approach on price and business requirements
  • Specification Changes – Establish functional specifications to meet needs
  • Joint Process Improvements– Enable supplier collaboration and streamline process
  • Strategic Relationship – Drive broader supply chain changes and collaboration

Nitor provides Strategic Sourcing under three engagement models:


1. On-Site Consulting Team
Nitor provides Sourcing augmentation services working on-site as your Sourcing team to lead and execute all aspects of the Sourcing project. Nitor builds a relationship with the business stakeholders to establish the needs and priorities and ensure buy-in to the Sourcing project. On-site consulting provides the client with the most experienced Procurement resources in the industry to fully execute and deliver Sourcing projects.

2. On-Demand Advisory Team
In the event the client has an existing category team in place, Nitor provides Sourcing advisory services execution. Nitor will work in an advisory role providing guidance and support to the existing Sourcing team throughout the process and provide on-the-job training and knowledge transfer. At the conclusion of the Sourcing project, the internal Sourcing team will have the expertise to manage existing categories and execute future Sourcing projects.

3. Remote Sourcing BPO
Nitor offers Remote Sourcing event execution, managing the RFx/auction event for the client. Remote Sourcing can be scaled and the model is flexible to meet the individual needs of the client – whether just managing the event or also providing full project and strategy support.

Three models can be delivered independently or integrated to provide full category coverage. The factors that typically determine the best model(s) to use include: spend amount, category complexity, market dynamics, resource availability, geographic spread and stakeholder impact.

Nitor can provide sourcing leadership, support or execution models based on the category and stakeholder need:

procurement consulting

The key differentiators of how Nitor conducts Strategic Sourcing are:

  • Ensures transfer of knowledge to category teams
  • Establishes alignment with business stakeholders’ needs and priorities
  • Builds a detailed spend baseline to define the current state and go-to-market bid structure
  • Develops robust business requirements covering Delivery, Quality, Service, Cost and Innovation
  • Conducts true strategic category analysis to identify the appropriate strategy – not a one size fits all approach
  • Delivers a holistic approach to sourcing and value delivery – deliver savings while also improving the performance of delivery, quality and service.
  • Value delivered can be measured against the spend baseline enabling true bottom line impact
  • Experienced resources bring category knowledge, process rigor & stakeholder management