Stonebridge Sourcing Solutions was formed in 2005 to serve a broad range of mid-market sized corporations throughout North America to develop sourcing strategies that assist with expense management and reduction across a broad range of expenditure categories.
The economic downturn in 2008 and the slow economic recovery has eroded the sales and revenue of many businesses, which means that a greater focus is being given to expenses to help improve the bottom line. Many corporations are realizing that the power of a dollar saved impacts a company's EBITDA greater than the impact of a dollar generated through sales (i.e. A company with a 5% profit margin must generate $2 million in revenue to earn $100,000 of profit. Whereas, a $100,000 in expenditure reduction hits the bottom line directly).
“With less than 50% of purchases being closely managed, many companies are spending millions of dollars each year inefficiently as a result of poor sourcing decisions and category spend strategies. A couple of the key factors contributing to this are a lack of senior management attention to procurement and procurement strategy, and not involving vendors in the management and decision making process…” Royal Bank
The Need for Stonebridge:
Many corporations may or may not have individuals or departments responsible for buying and purchasing, but there are a number of key factors that often lead corporations to Stonebridge:
- A need to reduce expenses and improve EBITDA
- Limited expenditure category knowledge or expertise
- A need to have external or third-party perspective of expenses
- Increased employee workload resulting in delayed or abandoned sourcing initiatives
- Unable to leverage expenditure categories with small or marginal purchasing power
- A need to implement expenditure Category Management