2. Strategic sourcing
Strategic Sourcing produces commodity and supplier strategies that provide a clear vision for the supply chain.

The commodity strategy encompasses all the stakeholder requirements and matches this to supply chain capability, assessing the gap to the stakeholder vision and known best practice. It recommends suitable suppliers capable of meeting this vision or who have the ability to do so over time. It also defines the clear expectations to be delivered in terms of technology collaboration, target product cost, long term capacity management, delivery and quality performance and relationship management.

The supplier strategy takes a clear direction from the commodity strategy. By jointly agreeing a common vision this will enable key investment decisions to be made, deliver a mutual benefit to both parties and secure long-term relationships.

These key programmes of work were developed by the Working Relationships Team in the purchasing area of Rolls-Royce. The work is now in the deployment phase and is transitioning into the purchasing priorities. The Relationships Team will continue to support the deployment in the coming months.