Dear Business Owner, looking for savings? Well, let me introduce my friend, Strategic Sourcing!

As we prepare for a recession and I sit here starting up a business (ya, I like projects - the more difficult the better). My first step was not to make a list of target customers, build a flashy website, or draft a business plan. I stopped... I stopped talking and started listening. Listening to the news, the business owners in my community, and the (sometimes self appointed) professionals in my LinkedIn network, I found out what mattered to them right now. Savings!

It's not a shock. I've run a small business before and I know that savings means more money in the pocket. They were worried about staffing, networking, marketing and advertising, and other business expenses. At no point did I hear any of them ask "how can we better manage these costs to drive them down and manage the risk that one of our key vendors may fall victim to the recession?"

Therefore, Alius Lumen was born. We are now on a crusade to educate business owners in the art of procurement, help them create savings, minimize risk, and develop a love for Procurement, Strategic Sourcing, and Contract Management just like me!

So, a few big questions...

What is Procurement...

Procurement is the process of identifying, acquiring, and managing the goods and services that a company needs to operate its business. It involves finding the right suppliers, negotiating contracts, and ensuring that goods and services are delivered on time and at the right quality and price. The ultimate goal of procurement is to support the company's operations by obtaining the right goods and services at the best possible value.

What is Strategic Sourcing...

Strategic Sourcing involves analyzing the company's spending patterns, identifying areas of opportunity for cost savings and performance improvement, and developing long-term relationships with key suppliers to optimize the company's purchasing power.

What's the difference?

The main difference between procurement and strategic sourcing is that procurement is a broader term that encompasses all aspects of acquiring and managing goods and services, while strategic sourcing is a more targeted approach to procurement that focuses on cost savings and supply chain optimization.

Why should I care?

It is important for companies to embrace some kind of organized procurement function because it can help them achieve significant cost savings, improve the quality of goods and services, and reduce supply chain risks. By working with reliable suppliers and negotiating favorable contracts, companies can obtain better value for their money and improve their bottom line. Additionally, a well-organized procurement function can help companies stay compliant with regulations, reduce waste, and improve overall operational efficiency."

Interested in learning more about how we can help drive savings, email us at Dan.AliusLumen@gmail.com