Should-cost and bid analysisYour negotiationYou sign the contract

The preparation behind a better negotiation

Category spend history, should-cost models and bid analysis from India and the Middle East. You negotiate.

Sourcing analysts working through supplier options
About the service

What is strategic sourcing support?

The analytical work that sits underneath a sourcing decision: market and supplier research, should-cost modelling, bid analysis, and the briefing pack your negotiator walks into the room with. We do the preparation. Your people do the negotiating.

Here is a question worth asking any sourcing provider, and one almost nobody answers on their website. Who is actually in the negotiation room? We looked at sixteen providers selling strategic sourcing services and not one of them says whether the person across the table from your supplier is a senior consultant, an offshore analyst, or increasingly a piece of software. Two of them are explicit about splitting the work, and both do it by replacing the analyst with AI rather than naming who the human is.

Who negotiates

You do. We build the should-cost model, analyse the bids, prepare the briefing and sit on the call if you want us there. We do not lead negotiations, commit to terms, or select your supplier. If that is what you need, hire a consultancy with senior people and pay consultancy rates for them.

Our answer is that it is you. We are an offshore team of analysts, and we are not going to imply otherwise by putting the word strategic in a headline and letting you assume there is a partner behind it. Negotiation depends on relationship, authority and context that sits inside your business. What it also depends on is preparation, and preparation is analytical work that scales well offshore. That is the part we take.

The gap that preparation closes is real, though the public evidence is older than anyone would like. The Hackett Group's benchmarking, using 2016 data published in 2018, put procurement savings at 5.6 percent of spend for world-class organisations against 3.3 percent for their peer group, while world-class functions ran at a lower operating cost, 0.59 percent of spend against 0.72 percent. Better outcomes on less overhead. We could not find more recent independent benchmarking than that, and we would treat any confident modern savings percentage with suspicion.

Coverage

Where we deliver

The regions we sell into, and the rules that govern each engagement.

  • Australia and New Zealand

    Our day overlaps ANZ mornings, so briefing packs land before your negotiations start. Australian Privacy Principles govern cross border handling.

  • Canada

    PIPEDA, and Law 25 in Quebec. Bilingual EN/FR supplier research where the market requires it.

  • United Kingdom

    UK GDPR, with an IDTA covering transfers to India.

  • GCC, UAE and Saudi Arabia

    Our Middle East team gives local hours cover and local supplier market knowledge. Saudi PDPL and UAE data protection in the DPA.

  • United States

    Committed overlap hours in the contract, not best efforts. SOC 2 Type II is on our certification roadmap.

  • Europe

    GDPR first, with multi-language supplier research. Strongest fit today in the Netherlands, the Nordics and Ireland.

What the team actually does

Five areas of work, handled end to end by the analysts assigned to your category.

Supply market and supplier research in progress
Category spend history

What the market looks like, who supplies it, where capacity sits and which way input prices have been moving.

Supply market mapped
Input price trends
Capacity and constraints
Regional differences noted
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Should-cost model being built from component inputs
Should-cost modelling

Building up what the thing ought to cost from its inputs, so the conversation moves off percentage discounts and onto evidence.

Cost built from inputs
Margin assumptions stated
Benchmarked against market
Model is yours to keep
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Alternative suppliers being found and qualified
Supplier discovery

Credible alternatives found and qualified before you go to market, because a competitive process needs actual competition in it.

Alternatives identified
Capability qualified
Financial stability checked
Willingness to bid confirmed
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Competing quotes analysed on a like for like basis
Bid analysis

Offers modelled on a like for like basis, including the total cost bits that quoted prices tend to leave out.

Like for like modelling
Total cost, not headline price
Scenarios compared
Assumptions made explicit
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Negotiation briefing pack being prepared
Negotiation preparation

The pack your negotiator takes into the room: the numbers, the alternatives, the walk-away and the questions worth asking.

Briefing pack prepared
Walk-away position modelled
Questions to ask listed
We support, you lead
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What we need from you

Four things, and the last one is the one that matters most.

Category spend data gathered for the engagement
Send the category data

What you spend on this category, with whom, and under what contracts if any exist.

Category spend history
Incumbent suppliers
Current contracts and terms
Volumes and specifications
The client negotiator named as engagement owner
Name one owner

The person who will actually negotiate, because the preparation has to fit how they work.

Your negotiator, named
Sets the objectives
Reviews the model
Joins the handover
Read only access to spend and contract data
Provision access

Read access to spend and contract data. We do not need to touch your transactional systems.

Read only is enough
Named users only
Or a scheduled extract
Revoked by you, any time
Sourcing objectives agreed before work starts
Agree the objective

What a good outcome is. Lowest price, better terms, more supply security or less risk. They pull in different directions.

What good looks like
Price versus terms versus risk
Constraints and must-haves
Agreed before we start
How engagement starts

How a category gets worked

Sourcing support is bought per category rather than as a retainer, because the work has a beginning and an end.

Agree the category

Which category, what you spend on it now, who the incumbents are and what outcome you are actually after. Cheaper is not always the answer, and it helps to say so early.

Current spend and incumbents
What good looks like to you
Constraints and must-haves
Build the evidence

Category spend history, supplier discovery and qualification, should-cost modelling and price benchmarking. This is the bulk of the work and where offshore analyst capacity earns its place.

Market and supplier research
Should-cost model built
Alternative suppliers qualified
Prepare and hand over

A briefing pack your negotiator can actually use: the numbers, the alternatives, the walk-away position and the questions worth asking. Then you run the negotiation.

Bid analysis and modelling
Negotiation briefing pack
You lead, we support on call
Comparison

A consultancy, Procuriva, or doing it yourself

Three ways to source a category properly. If it is genuinely strategic and relationship-heavy, a consultancy with senior people is worth the money and we will tell you so.

Sourcing consultancy
ProcurivaOur model
Your own team
Who negotiates
Their senior consultant
You do, we prepare
You do
Who does the analysis
Often their offshore team, unstated
Our analysts, and we say so
Your buyer, between other work
Says who is in the room
Rarely on the website
Yes, explicitly
Not applicable
Market and should-cost research
Yes, at consultancy rates
Yes, at analyst rates
Rarely, for lack of time
Cost model
Day rates or gainshare
Fixed fee per category
Absorbed
Gainshare on savings
Common, and it shapes advice
No, we charge a fee
Not applicable
Keeps the supplier relationship
Risk of them owning it
Stays entirely yours
Yours
Knowledge stays with you
Leaves with the engagement
Models and research are yours
Yes
Best fit
Complex, high value, relationship-led
You can negotiate but lack prep capacity
Small category with a spare buyer

Frequently asked questions

The questions procurement leads ask before handing sourcing preparation to an outside team.

What is strategic sourcing?

Approaching a spend category deliberately rather than reactively: understanding the market, knowing what the thing should cost, finding credible alternative suppliers, running a competitive process, and negotiating terms based on evidence rather than on last year's price plus inflation.

What is the difference between strategic sourcing and procurement?

Procurement is the whole function, including the transactional work of raising orders and paying invoices. Strategic sourcing is the upstream part: deciding what to buy, from whom and on what terms. One is the running of it, the other is the deciding.

Who actually does the negotiating?

You do. We build the evidence and the briefing pack and we will join the call if that helps, but we do not lead negotiations or commit to terms on your behalf. Negotiation needs authority and relationship context that lives inside your business.

Why not just have you negotiate for us?

Because it would not work well and we would rather say so. We are an offshore analyst team, not senior category consultants. If your category genuinely needs someone experienced across the table, hire a consultancy and pay for that seniority. We are the better answer when you have capable negotiators who lack preparation time.

What is should-cost modelling?

Building up what something ought to cost from its components: materials, labour, overhead, logistics and a reasonable margin. It changes a negotiation from arguing about a discount to discussing why the price differs from what the inputs suggest.

How much can we expect to save?

We will not quote you a percentage before looking at the category. The most recent independent benchmarking we could trace is The Hackett Group's, using 2016 data published in 2018, which put world-class procurement savings at 5.6 percent of spend against 3.3 percent for peers. Modern savings claims in this category are overwhelmingly self-reported, and we would treat confident numbers with suspicion.

Do you work on gainshare?

No. We charge a fixed fee per category. Gainshare sounds aligned but it quietly shapes advice toward whatever is easiest to measure as a saving, and it makes the baseline an argument. A fee keeps our incentive on doing the work properly.

How much does it cost?

A fixed fee per category, quoted on how much research the market needs and how complex the cost structure is. A commoditised category with published pricing is cheaper to work than a bespoke one with three viable suppliers worldwide.

How long does a category take?

Typically six to twelve weeks for the analysis and preparation, depending on how much market research is needed and how responsive suppliers are. The negotiation itself runs on your timetable afterwards.

What do we get at the end?

The market research, the should-cost model, the qualified supplier list, the bid analysis and a negotiation briefing pack. All of it is yours to keep, which matters because the model stays useful the next time the category comes round.

Will you take over our supplier relationships?

No, and you should be wary of anyone who would. The relationship stays entirely yours. We do research and analysis in the background; suppliers deal with your people.

Which categories do you work on?

Indirect categories where the analysis travels well: IT and telecoms, professional services, facilities, logistics, packaging, MRO and marketing services. Highly technical direct materials usually need engineering input we do not have.

Do we need spend analysis first?

Usually yes, and that is a separate service. Sourcing a category you have not measured means guessing at which categories deserve the effort. Most engagements start there, then pick the two or three categories worth working.

Is it safe to share commercial data with an offshore team?

Access is scoped by you, granted to named people, and revoked through your own leaver process. We contract on standard clauses, name every sub-processor, and work to GDPR, UK GDPR, PIPEDA, the Australian Privacy Principles and Saudi PDPL. Pricing and contract data is handled under confidentiality terms that survive termination. ISO 27001 alignment is in progress and SOC 2 Type II is on the roadmap.

How is this different from your category management service?

Sourcing support is project shaped: one category, worked through to a negotiation. Category management support is ongoing: market intelligence, scorecards and savings tracking across a category over time. Most clients start with the first.

Can we start with one category?

Yes, and it is the sensible way in. Pick a category where you already suspect you are paying too much, take the fixed fee, and judge us on whether the briefing pack changed how the negotiation went.

Which category are you overpaying on?

Tell us the category. We will tell you honestly whether the preparation is worth buying.