Strategic sourcing is a disciplined process that starts with defining a business need and results in contracting with those suppliers who can best meet the business need at the most competitive price.

Strategic sourcing is more than managing Requests for Proposals. Strategic sourcing encompasses a spectrum of activities, all of which contribute to getting the best solution to address the specific business need. The process includes:
 

• Spend analysis
• Benchmarking
• Business requirements development
• Evaluation of strategic options to current arrangements
• Market assessments
• Supplier segmentation
• Competitive bids
• Targeted negotiations
• Performance based contracts and risk arrangements
• Reporting requirements
• Supplier relationship management
• Supplier integration/coordination
• Process improvement

Strategic sourcing is a continuous process. The frequency with which a category is sourced depends on a variety of factors such as total spend, criticality of the category to business success, market dynamics and changing business needs.

RPM Health has pioneered the application of strategic sourcing tools and principles to healthcare services and programs. We have applied these strategic sourcing techniques to the procurement of health plans, pharmacy benefit managers, third party administrators, disease management and wellness programs, dental plans and other benefit categories. Let us show you how we can make a difference.