strategic sourcing

Supply Chain, Strategic Sourcing, Gibson Consulting
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        Home | Gibson-At-A-Glance | Our Process

        Our Process

        Supply Chain, Strategic Sourcing, Process, Methodology, Tools, Training

        Gibson works closely with our clients' executives and cross-functional sourcing teams guiding them through each step of our 11 Gate Process.

        Gibson’s Strategic Sourcing initiatives are a platform for our clients to achieve additional cost savings. Our professionals have conducted over 1,000 client training sessions to ensure best practices in strategic sourcing are transferred to our clients and their purchasing teams. We are committed to building critical skills in our clients so that, in the future, they can complete this work themselves. We consider ourselves process experts and we have fortunately worked on hundreds of categories in several industries so we are able to leverage this knowledge to the benefit of our clients. Regardless of the industry, spend categories, commodity groups, etc., the Gibson process has proven itself time and again to deliver significant savings.

        In our experience, 90% of our work has been focused on post benchmarking implementation with clients looking to create and sustain their own strategic sourcing operations. Our methodology, training, tools and techniques have been created to enable our clients to not only sustain project results but also to empower and enable their personnel to leverage the 11 gate methodology long after our engagement ends.

        Gibson has over 30+ years of Partner experience in global supply chain, procurement, and organizational strategy/transformation. We have worked extensively for Fortune 500 and private equity corporations in North America, Asia, and Europe providing operational, organizational, and implementation-based supply chain consulting services. Many companies believe that ‘People alone’ or the ‘Organizational Structure itself’ is the answer to world class sourcing. Gibson contends that the organizational design is a large part of building and sustaining a world-class enterprise procurement organization; however, without a detailed sourcing process methodology, continuous skill based training, sufficient current technology, and a clear strategy, an organization alone cannot achieve optimal results in supply chain. Bottom-line, a world class supply chain organizations must have these four elements: a clear Strategy, the best trained people (Organization), excellence in process execution (Operations), and effective Systems & Technology.

        Gibson measures success through actual, sustainable financial savings achieved. Savings are measured by bottom-line impact in terms of COGS reduction and/or margin improvement. The results are measured by the Financial Controllers and the CFO’s of Gibson clients to ensure there is no confusion on actual, realized results achieved. The magnitude of savings is directly related to the execution quality of the 11 process gates, and the sustainability of savings is directly related to the absorption of the training and adoption of the 11 gates into the organization’s purchasing philosophy.

        During the diagnostic, Gibson uses five (5) independent tests to estimate and guarantee savings. Gibson also guarantees the savings achieved in relation to its fees. In summary, if Gibson does not meet or exceed the savings guarantee, Gibson will pay the difference. In 20 years of client service, Gibson has always delivered its savings guarantees to a client.

        1. Opportunity Assessment
        Client teams begin the process by gathering spend data, interviewing cross-functional personnel, and evaluating existing skill sets in order to properly assess the benefits to be achieved. The intelligence gathering allows not only Gibson, but also our clients, to appraise, manage and prioritize savings, training and other business opportunities.

        2. Supplier Research
        Our team researches the global marketplace for suppliers that fit our client’s specific needs. This crucial step allows for customized benchmarking, differentiation and increased negotiation outcomes by introducing new and reengaging current suppliers.

        3. Profile Development
        Clients develop RFQ and RFI profiles which solicit the specific information needed for the cross-functional client team to make data driven decisions on supplier’s capabilities to be a viable long term supplier. This is the initial phase of data collection from suppliers, which provides market intelligence on the category and is leveraged to determine best practices.

        4. Supplier Presentation
        Client executives and stakeholders come together to build excitement and to announce their project to the top executives of all potential suppliers, engaging friendly competition and education between companies.

        5. Profile Analysis
        Clients evaluate completed profiles in an "apples-to-apples" comparison in order to narrow down the list of potential suppliers, educate themselves on the marketplace, and build customized minimum targets for negotiations.

        6. Site Visits
        Price is important, but don’t forget about quality. Clients visit plants of selected new and incumbent suppliers, engaging in extensive tours and face-to-face discussions in order to verify profile responses, qualify capabilities, build relationships, and substantially increase their overall market knowledge.

        7. Negotiations Preparations
        Over the course of multiple weeks of training and workshops, client teams prepare for negotiations. The market intelligence collected from supplier profiles and site visit sets "best of the best" targets for various topics which will be discussed during negotiations.

        8. Negotiations
        Client executives come together with supplier’s top management to negotiate over thirty separate issues and discover each supplier’s ability to meet all the team’s goals. These negotiable issues are documented in a Memorandum of Understanding which captures the terms under which business would be conducted.

        9. Supplier Selection
        Client teams, taking into account all information collected throughout the process, select the suppliers that offer the "lowest total cost" and best overall value for the goods or services being sourced.

        10. Transition Implementation
        To ensure successful project completion, Gibson remains an active participant as client teams move through the initial phases of contract execution and co-develop implementation plans with their selected alliance partners. Written communications, conference calls, webinars and/or live forums are scheduled to notify all internal stakeholders of the program.

        11. Alliance Management
        Gibson will put in motion the tools, resources, reporting and support to ensure future and continued support and information sharing will occur throughout the relationship. Areas of focus that fall within this area are value engineering teams, new product development teams, cost reduction teams, product rationalization teams, inventory optimization teams, and quality improvement teams.

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        Supply Chain, Strategic Sourcing, Quality, Improvement, Design, Process

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