The open market provides opportunities for clients to achieve significant cost savings by making high volume, production quantity purchases. Opportunistic sourcing such as this becomes a viable option when open market pricing drops below a client's standard cost.

Magellan can help a client identify and realize these opportunities proactively through a managed process involving the communication of key information feeds. Magellan matches client demand projections against current and projected supply across its supplier network, identifying opportunities that meet client criteria for cost savings, target pricing, minimum quantities, date codes, etc. Magellan then presents opportunities in accordance with client specifications so that sourcing decisions can be made.

Key success factors in opportunistic sourcing are:

• Up-Front Consultation - Client-Magellan discussion to qualify what represents an actionable opportunity in the eyes of the client so that sourcing efforts may be focused accordingly.
• Establishment of Information Feeds – How Magellan and the client will communicate demand and supply feeds on an ongoing basis, to include type and frequency of data interchange
• Resources to Ensure Information Accuracy – Provision of resources (e.g. AVL information with part numbers, descriptions, standard costs, etc.) to ensure that efforts are focused on the “right” parts at the “right” price.

Open market sourcing typically best serves a client when it augments, rather than disrupts, a client's “normal” supply chain. At Magellan, we work hand-in-hand with clients to identify opportunities in a timely manner so clients can manage their overall supply chain effort with minimal disruption and maximum benefit. Ultimately, our goal at Magellan is to serve as an integral supply chain resource to our clients.