SOURCING STRATEGY

The Brains Behind the Game

Group 3

Introduction
Strategic sourcing is an ongoing effort to accomplish three things To understand- analysis of markets, suppliers, internal capabilities, need, competitors and industries. To decide- the tactical "go-to-market" part. To manage- depends upon customer expectation of value and the competition's action shift.

Understanding Lead to StrategyUnderstanding Lead to Strategy-

Understanding Lead to Strategy Step 1- To understand what is needed, what is to be received from the supply base. Step 2- Analyzing the potential suppliers, their industry, the power in that industry between suppliers and buyers and the classic supply/demand. Step3- Deciding how to approach the market and which supplier to choose.

Niche Tool
Assist the strategic thinking and analysis efforts for creating wining source strategy Analysing suppliers and supply/demand balances in key markets by analytical tools.

To identify where the power lies in the chain.

based on supply/demand, inherent assets.

External Environment Scan

Search engines, suppliers catalogue, websites.

Over flooded with data.

Key is to determine what information is needed & focus on excellent places to find it

Cox Power Grid

Analysis of balance of power between the buyer and each supplier in a spend category. It is based on finding the answer to following five questions Relative importance of the product of the buyer Nature of the demand & supply flow. Power attributes of the buyer Importance of the buyer to seller Power attributes of the seller Benefit Highlights what is not known as much as what is not known.

Key Learning
Big Data- Set back and look for relevant data. How to analyze the supplier and buyer relation. Technology will help in future prospects. Wal Mart Effect & Toyota Supply strategy.