1. LAYS A STRONGFOUNDATION FOR BPM

2. ENHANCES GLOBALSUPPLIER DEVELOPMENT

3. GLOBAL SOURCING TOCOUNTER GLOBAL COMPETITION

The traditional approach to S&P is giving way to newer, innovative approaches – all in an e�ort to derive more business value. One example is low cost country sourcing (LCCS) or best cost country sourcing (BCCS), which until now worked independent of business process management (BPM)

processes. A newer approach is the IPO model that capitalizes on the strong synergy between the two. Here are 6 reasons why IPO is the way forward for S&P functions.

6 bene�ts of theinternational purchasingo�ce (IPO) model

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A typical IPO carries out sourcing and supplier development, and gathers supplier management information

that lays foundation for BPM in a more structured manner

6. EXPANDS BPO POSSIBILITIES

Country-focused sourcing e�orts will make the most of bene�ts available in

the supplier’s native country

The IPO model helps identify and develop key suppliers across

important sourcing categories (direct and indirect)

LCCS-enabled category management, by virtue of being connected to

transactional procurement and other processes, means more avenues to

e�ectively utilize BPO services

4. VALUE FROM BEING MODULAR

An IPO can be modularized to the extent that it is able to form a niche

service o�ering to the overall source to pay (S2P) teams in the enterprise

5. END-TO-END CATEGORYMANAGEMENT

With an IPO, sourcing and procurement functions can bene�t from fully

engaged category experts and quality assurance teams

THE SOURCING AND PROCUREMENT(S&P) SERIES