Enhanced understanding of Buying Channel optimization enabled SCA to ensure their procurement strategies are turned into reality

”The work with buying channels is an important piece of the puzzle within strategic procurement. It’s the piece of the puzzle that ensures that our procurement strategies are realized every time something is purchased. Therefore, it has been important for us to focus on this often overlooked area so we can ensure that our strategies are turned into reality” Magnus Blomberg, Business Development Manager, SCA Sourcing & Logistics AB

By creating a common understanding of what a buying channel is and how it should be put into practice, we ensured that the category managers at SCA had a solid foundation for setting the buying channel strategies, applicable for their categories.

The enhanced understanding of buying channels within strategic sourcing is seen as a very important component to realize savings on negotiated contracts and to increase efficiency and automation throughout the Procure-to-Pay process. With the Buying Channel Coaching provided by Stretch, we made the sourcing team at SCA aware of how the internal customers can call off from agreements in the most optimal and user friendly way.

Analyzing the spend, including the amount of transactions, gave an understanding of how SCA could approach each category and defined the optimal strategies per each category. Based on the analysis and proven best practices given by Stretch, SCA were able to design their buying channel strategies for their indirect material categories.

Stretch Procurement advise organizations on how they should define their buying channel strategy irrespective of what procurement solution used. We help our customers to increase contract compliance and to get a higher automation rate by optimizing the mix of buying channels. This means to select the correct buying channel per category.

Through workshops and individual coaching, we enhance the understanding within sourcing and provide the category managers with a solid tool kit for setting the Buying Channel Strategy to achieve the category specific requirements.

In addition we provide insight into Guided Buying and Content Management, closely connected with the Buying Channel Strategies.

Based on our expertise and in-depth knowledge within procurement and SAP Ariba, Stretch Procurement gained trust at SCA and the customer decided to assign Stretch Procurement as an advisor during the implementation of SAP Ariba Guided Buying.

SCA is Europe’s largest private forest owner with 2.6 millions hectares of forest in Northern Sweden, Europe’s largest private forest holdings. Around this unique resource, SCA has built a well-developed value chain based on renewable raw materials from their own and others’ forests.

Stretch Procurement has more than 15 years extensive experience of market leading procurement solutions, including implementation, advisory and capability development. Our mission is to develop new, or enhance current, capabilities so that organizations may excel their value contribution.

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