Strategic Sourcing.
fact-based, data-driven approach
Treya Partners Strategic Sourcing Credentials
Treya has addressed several billions in spend and achieved over $250M in annual recurring cost savings for our clients. Our teams have successfully conducted over 1500 supplier negotiations across more than 300 unique spend categories.
Category sourcing services include multi-round RFPs, rapid bids/RFQs, reverse auctions, incumbent negotiations and advanced TCO sourcing.
"Treya's process was rapid and impactful. They utilized deep category expertise as well as pre-negotiated leveraged contracts to deliver significant value for our organization. Overall the project was very successful, our stakeholders were thrilled and we achieved significant savings and a compelling ROI."
- Sr. Director, Strategic Sourcing, $600M Paper Products Company
Achieve 10-25% cost savings through a fact-based, benchmark driven, analytical process
Maximize savings through additional focus on specifications rationalization, demand management, and process re-engineering
Achieve cost savings across a broad portion of your indirect and direct spend
RIGOR WITHOUT RIGIDITY
The Process.
Strategic sourcing is a fact-based, data-driven approach to reducing the costs of purchased goods and services. At its best, strategic sourcing results in the creation of hard dollar cost savings while putting in place needs-based, accountability-focused contracts. Treya’s approach to strategic sourcing prioritizes intensive usage data analysis, supply market intelligence, price benchmarking through our proprietary benchmarking database, alignment of specifications with business needs, and multi-round supplier negotiations. Treya brings rigor without rigidity to the sourcing process and facilitates holistic cost reduction initiatives that ultimately result in accountability-focused contracts in which savings and service levels are maintained over time.
What is strategic sourcing, and how is it different from negotiating with a supplier ourselves?
Strategic sourcing is a structured way to buy goods and services, from raw materials and packaging to freight and software, at the right price: benchmark what you pay, put the category out to competition, negotiate with the data in hand, and write the contract so the savings hold. Negotiating with one supplier yourself means working from that supplier’s numbers. We work from ours: pricing from prior engagements in the same category, run through several rounds with several bidders.
How much can we expect to save?
Typically 10 to 25% on the categories we source. The savings come from competing the category among qualified suppliers, tightening the specifications, and managing demand, across both direct and indirect spend. In one published engagement, a restaurant chain saved $3.4 million a year, an estimated $44 million in enterprise value. A senior sourcing director at a $600M paper products company put it this way: “Treya’s process was rapid and impactful. They utilized deep category expertise as well as pre-negotiated leveraged contracts to deliver significant value for our organization.”
Which categories does Treya source?
Both indirect and direct categories. Indirect includes freight, small parcel, telecom, IT hardware, temporary labor, travel and facilities; direct includes raw materials, metals, resins, packaging and manufactured components. Each category is run by someone who has sourced it before and brings benchmark pricing from those engagements, so you’re negotiating against real numbers.
What does our team have to do during an engagement?
Less than you’d expect. We run the process: gathering the spend data, building the baseline, running the bids, negotiating, and drafting the agreements. Your team tells us what matters operationally and makes the supplier decisions. Most of the work happens without a project landing on your operating team, which is the point. The time you’ll spend is in a handful of decisions.