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Simple projection of savings is not enough: sourcing risks may go undetected without the proper risk analysis. Smart sourcing incorporates ROI analysis, capital efficiency models, project planning, portfolio management, prioritization, and value audits. Even if you cannot pin a dollar amount to the risk, the practice of asking those important questions will strengthen the sourcing endeavor and provide a true understanding of the process. Communication and informed decision-making will ensure the initiative’s success and optimize performance at all stages of sourcing management.