Scribd
Upload
352 views1 page

Strategic Sourcing Process Explained

The strategic sourcing process involves 7 steps: 1) Grouping expenses into categories to understand supply chain needs. 2) Researching potential suppliers while considering costs, risks, and advantages. 3) Determining suppliers and developing backup plans to reduce expenses and risks. 4) Developing sourcing plans to achieve the lowest total costs through actions like reverse auctions. 5) Gaining more supplier information through negotiation to achieve mutual benefits. 6) Onboarding new vendors to integrate them into company systems seamlessly. 7) Tracking key supplier performance indicators to evaluate whether goals are being met.

Uploaded by

uprizal pratama
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
352 views1 page

Strategic Sourcing Process Explained

The strategic sourcing process involves 7 steps: 1) Grouping expenses into categories to understand supply chain needs. 2) Researching potential suppliers while considering costs, risks, and advantages. 3) Determining suppliers and developing backup plans to reduce expenses and risks. 4) Developing sourcing plans to achieve the lowest total costs through actions like reverse auctions. 5) Gaining more supplier information through negotiation to achieve mutual benefits. 6) Onboarding new vendors to integrate them into company systems seamlessly. 7) Tracking key supplier performance indicators to evaluate whether goals are being met.

Uploaded by

uprizal pratama
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Strategic Sourcing Process

1. Category Profiling

In this step, what company do is grouping company expenses and goods by knowing the
consumers, how many quantities that are being used, and who is in the supply chain, and then
all that information being separated into group.

2. Analysis of Suppliers in The Market

Doing research to choose which is suppliers that have big potential, but also considering the risk
and advantages of choosing that supplier, the company also consider the cost from choosing
that supplier, such as raw material cost, labor, and transportation cost.

3. Strategy Development

In this step, what we must do is to determine our supplier but also find a way to reducing risk
and expenses when by choosing that supplier. We must also have backup plan for our supplier
and the market competition

4. Sourcing Strategy

This step is a step where company develop their plan for sourcing, in hope for company to have
the lowest total costs, so that’s why some company may conduct reverse auction so they can get
the cheapest suppliers out there.

5. Negotiation and Supplier Qualification

When company found their supplier, they do this step to gain more information and some
clarifications, they also do negotiation so both can have mutual benefit, and each of them is
satisfy.

6. Onboarding the Vendors

So basically, this step is where the suppliers get in into company system, so all the process can
run seamlessly, and they will notified the vendors that they are already involved in the process
of implementation, any changes for improvement can be part of the strategic procurement plan

7. Define KPI to Track Result

A step where company choose which KPI (Key Performance Indicator) they will be used to track
the supplier, so they can know whether the supplier that they choose is doing good or not

And the final steps will be benchmarking, to ensure that the maximum value of company is
achieved, and if not achieved they will not what the problem is and fix that problem

You might also like