Mahesh Khamkar's blog

Business Model Mapping, Cost Modeling & TCO

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SIG University Certified Sourcing Professional (CSP) program graduate Mahesh Khamkar discusses the concepts of business model mapping and cost modeling and how to apply them to your business.

An excellent program has come to an end, but the concepts learned will be with us forever. All modules are equally important as part of a successful sourcing professional learning journey; however few topics I found interesting which relate more to my current responsibilities & domain are: Business Model Mapping, Cost Modelling & TCO. 

Business Model Mapping: In the current role wherein I have been dealing with more than 30-40 suppliers, we never segregated them as Basic, Approved, Preferred, etc. With the deep insight provided by the SIG CSP program, we have started mapping suppliers on Sourcing Continuum based on Transactional-Relational-Investment business models.

This has further enabled us to know that few suppliers who were earlier in either Transactional or Approved Category have the potential to convert them further on Sourcing Continuum to preferred and Output/Outcome-based economic model. An example: A supplier we used to consider for regular buying of a particular cabinet is now being developed for more complex designs. The relationship model with this supplier is now more strategic as we are planning legacy products & new products jointly in a better manner. As the outcome from the supplier is more than the expectations, we are raising the bar by discussing more strategic developments with the supplier.

Mahesh Khamkar, Deputy General Manager of Procurement, Reliance Projects & Property Management Services Ltd