There are predictive monitoring and forecasting capabilities that businesses are taking advantage of to increase their competitive capabilities. For example, recently a major commercial aircraft supplier was unable to deliver an aircraft order to a customer on time because its ashtray business went bankrupt. A major bus company was also unable to deliver a bus order because the company that manufactured and supplied their bumpers had also gone bankrupt. These two examples illustrate the power of information and the need to source strategically. It's not just the delivery of a component that is at stake, but also the most knowledgeable allies who manage your supplies and impact your ability to deliver to market. Strategic sourcing is the springboard for supply management – ​​there are many processes: from forecasting and planning up front to supplier management and score carding. Strategic sourcing is where it all starts: you select suppliers that enhance your business's capabilities, impacting your bottom line, and build long-term relationships. You manage the performance of this supply base and negotiations are underway to drive value in the sourcing and supply chain management strategy. It is up to organizations to understand what they are buying, who they are buying from, who they are buying it for, and how much they are spending to achieve those goals. Across the company and globally, get senior management to realize this, streamline this, and determine who the best suppliers are. Fundamentally, organizations need to ask themselves what they are trying to accomplish with strategic sourcing. If it was all about price and/or cost... middle of paper ... surprise. It was suggested that this should be done by executive fiat – this would become an operational mechanism that would work harmoniously over time. (23:38)The stakes are very high in terms of strategic sourcing; it is one of the most benign sources of shareholder value, traditionally overlooked by a more traditional view of the purchasing function. The vast majority of companies, especially manufacturing companies in the United States, have a huge opportunity to integrate strategic sourcing into their business practices, but it unfortunately remains untapped at this time. Procurement office managers who establish strategic alliances and/or partnerships that generate best practices and improve supply chain processes can reasonably expect net savings of 3-5% on products and services purchased while simultaneously doubling business results..