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When building a truly sustainable sourcing program that yields significant savings, an essential component is managing both strategic and non-strategic spend effectively. For influencing strategic spend, organizations can create a strong category management organization that leverages people, process, and technology in the most effective way. Equally important is building and nurturing relationships with strategic suppliers, as they are critical to the supply chain. For lesser-addressed non-strategic spend there is still a significant opportunity for savings, which is generally overlooked because of lack of bandwidth for most part. However, implementing long tail strategies and using a strong programmatic approach, sizeable savings can be achieved.
Best in class organizations are finding that a programmatic approach --- one that combines both strategic and non-strategic spend—creates an opportunity to drive real change and make savings even more sustainable over time. A holistic programmatic approach allows for the creation of permanent change within the organization, is designed to improve sourcing influence, and can deliver real, lasting value over time, which should result into gaining a seat at the decision making table.