Tactical sourcing, fast lane for medium value purchases

Abstract

Medium value purchases make up a vast portion of organisations’ purchases. Medium value purchases differ from large purchases that the purchases value is smaller and quantity higher. They are not managed efficiently if they are managed as large purchases. However, they should not be managed as small purchases as they have savings possibilities that are not obtained with a process that is designed for small purchases. This study offers a solution for medium value spend management. The solution is tactical sourcing. The tactical sourcing is designed for Tieto Corporation’s need and it was influenced by Six Sigma methods and tools.