SOURCING BUSINESS MODEL

Sourcing Business Model that is most appropriate for their sourcing condition
to enhance overall business operation. Sourcing Business Model theory
suggests sourcing should be thought of as a business model between two
parties with the goal to optimize the exchange.

The following are the six (6) standard business models:

1. Basic Transaction Provider

2. Approved Provider
3. Preferred Provider
4. Performance-Based Agreement
5. Vested Business Model
6. Shared Services
7. Equity Partnerships

A Sourcing Business Model is a combination of an organization’s Relationship

Model and Economic Model.
PROCUREMENT STRATEGIES

1. Surveying the market

2. Spotting potential suppliers
3. Creating an approved list of vendors
4. Spotting internal needs
5. Creating a purchase order online
6. Requesting proposals and evaluating quotations
7. Selecting the right supplier and negotiating effectively
8. Receiving goods and performing quality checks
9. Developing and managing contracts
10. Processing invoice approvals and fulfilling payment terms for repeat
orders
11. Establishing a good supplier relationship

The purchasing process involves the following steps:

1. Obtaining a purchase requisition

2. Requesting proposals and evaluating quotations
3. Transmitting official purchase orders
4. Receiving products and services
5. Checking the quality of delivered items
6. Effecting payment to vendors