PO Box 4132
New York, NY 10163
ph: 516-350-0691
info
Archangel Equity Partners, LLC 
Strategic Sourcing
Strategic Sourcing is the modern medium that has evolved to maximize supply and demand efficiency. In other words, if you have a problem you already have a demand for something - the next logical question is how do you best use the resources at your disposal to gain the supply you need and thereby optimize the solution to your problem.
"Theory cannot equip the mind with formulas for solving problems, nor can it mark the narrow path on which the sole solution is supposed to lie by planting a hedge of principles on either side. But it can give the mind insight into the great mass of phenomena and their relationships, then leave it free to rise into the higher realms of action."
- Carl Von Clausewitz
A strategic approach to sourcing or optimal problem solving, must start by understanding the theory:
Herbert Robbins, a mathematical statistician PhD, identified the 'Multi-Armed Bandit' problem ('the bandit') in 1952. The theoretical probability problem deals with how a limited amount of capital should be allocated given a limited amount of data available in order to maximize the return on that capital.
In other words, how do you get the most bang for your buck!
The world has become flatter since the 1950's, sectors have melded recognizing that sharing data across the process yields better results. The late 50's into the 60's are highlighted in the recent series "Mad Men." Businesses would engage agencies to come up with ads and slogans that would hopefully catch the attention of someone that might need the goods and then become a customer.
Empirical research yields evidence that computer technology and their solving algorithms at high speed avail improved data collection - metadata - and an optimal use of that metadata, better addressing 'the bandit'.
During the 1990's the role of third parties or brokers in the financial services sector started to dissipate. Direct investor relations were opened with a greater volume of investors. As the computer evolved and with the advent of the internet, the trend gained pace and became known as its own business sector by the 2000's: 'Procurement.' Today it is rare that businesses rely heavily on relationships with their vendors, as is shown in "Mad Men." Rather, with good data, decisions became subject to cost-benefit analysis. Companies established Procurement Departments to streamline purchases and gain leverage through economies of scale - both on the buy or investor side and the sell side. Inviting multiple parties to bidding processes, most often via online platforms.
Although things may have become more complex, it is due to more data availability.
Our Strategic Sourcing strategies can make modern 'Collaborative Consumption' work to your advantage!
Copyright 2013 Archangel Equity Partners, LLC
All rights reserved.
PO Box 4132
New York, NY 10163
ph: 516-350-0691
info