3. The 7 steps of sourcing: from need to contract

Sourcing as a multi-phase process

Sourcing is a multi-phase process that typically spans 3-6 months for complex procurements. Leading frameworks (McKinsey, CIPS, Hackett) define different numbers of steps, but the basic structure is the same: needs assessment, market research, request for proposal, evaluation, contract signing.

The seven-step model

The most frequently referenced model for strategic sourcing is the seven-step process defined by AT Kearney / McKinsey:

Phase
Activity
Key output
1. Category profiling
Spend analysis, mapping internal needs
Category profile, spend map
2. Market assessment
Analyzing supplier market, identifying potential partners
Market intelligence, supplier list
3. Sourcing strategy
Selecting RFx type, evaluation criteria
Sourcing plan
4. Supplier selection
Conducting RFI/RFP/RFQ
Proposals, comparison
5. Negotiation
Refining commercial terms, BAFO
Finalized proposal
6. Implementation
Contract signing, supplier onboarding
Signed contract
7. Results maintenance
Performance tracking, savings validation
Benchmark data, re-tendering plan

Fluenta One's sourcing function directly supports phases 3-6, while providing connection points for preparation (category codes, supplier database) and follow-up (performance scorecard, contract management).

Sourcing cycle time

One critical performance indicator for sourcing is cycle time: how long it takes from requirements formulation to contract signing. According to Hackett Group benchmark data:

Organization type
Cycle time
Average organizations
90-120 days
Leading organizations
45-60 days

Reducing cycle time is not an end in itself—too fast a process can lead to superficial evaluation. But eliminating unnecessary waiting (waiting for approval, manual data processing, email ping-pong) creates real value.

How does Fluenta One accelerate the process?

  • Parallel evaluation: multiple evaluators can work simultaneously without waiting for each other
  • Automatic comparison: proposals are immediately arranged in a comparative view
  • Integrated Q&A: supplier questions can be handled within the system, not in email chains
  • Templates and copying: recurring tenders can be created in minutes based on previous events
  • Early closure: if all proposals have been received, there's no need to wait for the deadline

Together with the platform's other functions (supplier qualification, risk management, contract management), the entire supplier lifecycle can be covered, but the sourcing function can also be used independently.

What's next?

Suppliers who pass the preliminary screening enter the qualification phase. This is where it's determined what depth of due diligence the supplier undergoes, what control category (tier) they fall into, and consequently what intensity of monitoring awaits them throughout the relationship's lifetime. The next section presents this risk-based qualification process.