There are predictive monitoring and predictive capabilities that companies are taking advantage of to increase their competitive capabilities. Case in point: A major commercial aircraft supplier recently was unable to timely deliver an aircraft order to a customer because its ashtray company went out of business. A major bus company was also unable to deliver a bus order because the company that produced and supplied the bumpers also went out of business. These two examples illustrate the power of information and the need to sourcing strategically. It's not just the delivery of a component that's at stake, but the most capable allies who manage your supplies and impact your ability to deliver to market. Strategic sourcing is the stepping stone to supply management: there are many processes: forecasting and planning on the front end or back-end supplier management and score cards. Strategic sourcing is where it all begins and you select suppliers that enhance your company's capabilities that impact your bottom line and establish long-term relationships. You manage the performance of that supply base and on an ongoing basis there are deals to bring value in supply management and supply chain 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 the organization is spending to achieve those goals. Across the company and on a global basis, senior leaders realize this, rationalize and determine which suppliers are the best. Fundamentally, organizations need to ask themselves what they are trying to achieve with strategic sourcing. If it was all about price and/or cost… middle of the paper… surprise. It has been suggested that this should be done by executive decree: it becomes an operational mechanism that operates harmoniously over time. (11.38pm) There is a lot at stake in strategic sourcing; it is one of the most favorable sources of shareholder value that has traditionally been overlooked by a more typical view of a purchasing function. The vast majority of companies, especially manufacturing companies in the United States, have a tremendous opportunity to incorporate strategic sourcing into corporate business practices, unfortunately this is currently untapped. Purchasing officials who implement strategic alliances and/or partnerships that produce best practices and improve supply chain processes can reasonably expect a net savings of 3-5% on purchased raw materials and services, while doubling company profits. 'agency.