Strategic sourcing
How do I reduce my invested working capital?
To reduce invested working capital, you can focus on understanding the Cash Conversion Cycle (CCC), ensuring optimal inventory planning, improving forecasting accuracy, managing backorders and safety stock strategies, and prioritising high-revenue products. Regular tool maintenance for inventory planning and working capital management is essential. Extolla can assist you in finding the right balance in your strategies to optimise financial success.
Am I spending too much? Do I have the right suppliers?
Extolla’s technology-agnostic sourcing approach helps align your spend with a comprehensive sourcing plan, whether for tactical or strategic sourcing activities. Our extensive experience means we provide balanced advice based on market knowledge, commercial realities and accurate design requirements that are tightly aligned with your financial strategy. We know that great sourcing outcomes come from detailed planning, clear supplier communications and clarity on the difference between “essential and nice-to-have”.
Where do I have supplier risk and how do I manage that?
Visibility of your supply chain is critical for risk mitigation – particularly with regard to ESG. Extolla works to deepen your understanding through site visits, supplier assessments, and leveraging AI and third-party data sources to think beyond the immediate deal and address future opportunities and potential advantages. This includes risk profiling suppliers, digitising supply chain elements, diversifying your supplier network, and building strong relationships with suppliers.
Why do I need strategic sourcing?
Sourcing activities span from the tactical through to the strategic. Understanding factors such as speed, geographic issues and knowledge of suppliers, all contribute to effective sourcing execution and outcomes. Extolla brings further benefits, beyond risk management, including cost optimisation and alignment with your capital investment strategy to ensure sourcing is integrated with decision-making, leading to powerful links between your P&L and investment decisions. Extolla acts as a trusted advisor, enabling you to confidently present your business case to your board and identify best practices for your business, not your suppliers.
