Blog post

How Strategic Sourcing Can Save Your Facility Money

Maintaining your facility is time consuming enough, which is why it might be wise to consider outsourcing all your service procurement activities to a trusted partner. Encompass Onsite (EO) works with institutions of all sizes and industries to find the right suppliers in order to save time and reduce stress, all the while ensuring minimal disruptions, high levels of quality, and continuity of service. We work with with our clients' teams to implement procurement best practices, provide category intelligence and increase spend visibility.

Author: Rebeca De Ojeda
Here are some of the perks of sourcing strategically and why partnering with an experienced vendor can be beneficial to your organization.

Why Strategic Sourcing?

First off, employing strategic sourcing processes introduces competition and can lower purchase prices. Furthermore, when partnering with a professional vendor, you may be introduced to sourcing options not previously explored that are more cost effective. Strategic sourcing can also help support disciplined growth by consolidating your organization’s supply base, leading to even more savings.

How It Works

To ensure the process works, it’s important that first a pool of qualified suppliers is identified. A successful methodology sources and evaluates suppliers based on cost, quality, and services provided.

Category Intelligence

Encompass Onsite provides many years of experience in many--if not all--facility maintenance fields, which brings unique category intelligence to all sourcing decisions. We provide your organization with invaluable guidance for both developing the request for proposal, giving insight into how the work needs to be performed, and evaluating the proposals received from outsourced providers. EO also advises facility managers and executives on what is needed for a successful outsourcing effort, based on your company's critical priorities (less expensive service, better technology, faster service and/or best practice applications), and helps weigh evaluation criteria (experience, customer satisfaction, cost, innovation, and/or technical methodology).

Spend Visibility

To maximize the value from suppliers, we look into spend, processes and performance. We review metrics that drive improved process efficiency and cost savings and analyze your facility’s past spend to plan a direction for the future. Studies have found that when it comes to effective spend visibility:
  • The incremental value achieved is real and substantial, ranging from 3.6% to over 20% of spend.
  • Numerous qualitative benefits, such as empowerment of procurement, relationship continuity, and streamlined billing processes add to the net benefit. 
According to Ariba, “Visibility should extend beyond simply showing who purchased what from whom. Maximum value is obtained by looking into procurement and sourcing processes to identify bottlenecks, and by measuring the performance of buyers and suppliers.”


Ultimately, Encompass Onsite’s strategic sourcing team leverages its expertise to ensure we develop the ideal program for your organization. We’ll collaborate with your internal teams to ensure that:
  • Efficiencies are achieved
  • The scope of work is based on high service levels that minimize disruptions
  • Providers and the scope of work are consolidated
  • We negotiate the best-in-class pricing and agreements
  • We develop a continuous improvement program that ensures sustainable results from your suppliers going forward
Ready to take the next step? Contact us to learn more.

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