How We Work with Suppliers
Sourcing Office is NOT your typical group purchasing organization.  Time and again we hear from our supplier partners that our approach is new, unique, and delivering top line revenue growth.

What makes Sourcing Office different?  The Sourcing Office team diligently works to create a triple win: cost and time savings for the participants, profitable revenue growth for the supplier, and utilization growth of Sourcing Office programs.  We are focused on aligning the interests of all parties for their respective benefit.

Sourcing Office is a full service group purchasing organization.  While most consortia simply pick a supplier, hand their membership list to that supplier, and wait for a check, Sourcing Office employs a strategic three-pronged approach to develop best-in-class programs with best-in-class suppliers, grow supplier revenue through a consultative sales process, and manage both suppliers and participants expectations and performance throughout the contract term.

Click the headings on the right side of this page to learn more about how Sourcing Office sources, services, and sells our programs, as well as the ways in which Sourcing Office works with potential suppliers.

Differentiators

Sourcing Office employs a strategic three-pronged approach to develop best-in-class programs with best-in-class suppliers, manage both suppliers and participants expectations and performance throughout the contract term, and grow supplier revenue through a consultative sales process.

SOURCE: Sourcing Office has developed a procurement methodology that engages both suppliers and customers in a collaborative approach to develop highly innovative, best-in-class contracts.  Sourcing Office follows a public sector competitive solicitation process.  Once a contract is established with the winning supplier, virtually any public sector entity in the country can purchase through that contract and not have to conduct its own bid process.  For each program it procures, Sourcing Office:

• Secures Committed Spend: Typically, Sourcing Office secures several million dollars in “committed spend” from Sourcing Office participants who have agreed to allocate their spending on that particular good or service to the Sourcing Office contract.
• Develops Financial Forcasts: Sourcing Office works with suppliers to develop reasonable financial projections to set clear expectations of top line revenue growth and program profitability.
• Retains Subject Matter Expert: Sourcing Office retains a consultant with senior management experience within the program area’s industry.  This individual works closely with potential suppliers and participants to develop program specifications that align the interests of suppliers and customers.
• Seeks Supplier Input: In advance of finalizing specifications, Sourcing Office meets with potential suppliers to review the proposed program and secure the input of suppliers.  Our objective is to develop programs that reduce customer acquisition costs, lower customer administration/service costs, and increase year-over-year customer retention rates.  A key element of our approach is designing program specifications that incentivize optimal customer behavior.
• Designs Value-Added Programs: Too often, the typical government procurement process focuses on lowest price and commoditization, rather than focusing on the total cost of ownership.  Sourcing Office is committed to developing programs that combine attractive pricing with a range of value-added services to bring 21^st century business practices to the public sector.
• Targets a Broad Customer Base: Sourcing Office intentionally designs programs that can be tailored to meet the needs of the broadest possible customer base through a single contract vehicle.
• Moves Quickly: A typical Sourcing Office procurement process, from date of RFP publication to contract award, is 35-45 days.
• Follows Public Sector Procurement Guidelines: Sourcing Office procures every program in accordance with applicable public sector competitive solicitation procedures.  This approach enables the winning supplier to deploy its sales force to sell an already-procured contract to current and prospective customers within the supplier’s customer service footprint from coast to coast.
• Drives Down Legal and Administrative Costs: A Sourcing Office contract features standardized contract terms and service level requirements, lowering each suppliers’ legal and administrative costs of working in the public sector.

SERVICE: Unlike typical consortia and state-term contracts, Sourcing Office’s active involvement does not end once the contract is signed.  Sourcing Office:

• Supports Customer Implementations: Sourcing Office works hand-in-hand with our supplier partners to ensure a smooth and efficient roll-out of new programs with initial participants.
• Streamlines Customer Service: Sourcing Office becomes an extension of each supplier’s customer service team.  Our office fields customer calls and works with suppliers to resolve outstanding issues in a low-stress environment.
• Monitors Customer Purchasing and Payments: Sourcing Office reviews sales and Accounts Receivable reports with each supplier on a regular basis to ensure that customers are meeting their obligations to our supplier partners.
• Conducts Routine Supplier Reviews: Our team works with suppliers to ensure that our suppliers are meeting their obligations to our customers and prospects.

SELL: Sourcing Office becomes an extension of our suppliers’ sales force.  Our objective is to grow program revenue by delivering pre-qualified leads to our supplier partners.  Sourcing Office:

• Develops a Comprehensive Sales Plan: In conjunction with our supplier partners, Sourcing Office develops and implements a sales strategy designed to penetrate the maximum number of accounts.
• Establishes Case Studies: Sourcing Office captures testimonials and relevant price comparisons from early adopters and utilizes these success stories in marketing and communication materials sent to current and potential Sourcing Office participants.
• Communicates with Supplier Sales Teams: Sourcing Office is in regular contact with our suppliers to manage the sales pipeline, share intelligence, and coordinate sales activities.
• Matches Programs and Qualifies Prospects: Sourcing Office conducts the heavy lifting in advance of involving our supplier partners with prospects.  Our team determines which Sourcing Office participants are the best suited for to each program.  We then qualify those prospects by working with suppliers to build the business case for each prospect.
• Cross-Sells our Programs: A key advantage to working with Sourcing Office is that we cross-sell new programs to customers who are utilizing other Sourcing Office programs.
• Supports Additional Program Growth: In addition to selling programs to our participants, Sourcing Office trains our supplier partners’ sales staff to introduce the already-procured contract to prospects across the supplier’s customer service footprint.