1.

Sourcing & Procurement

In supply chain management (SCM), sourcing and procurement are integral components. Sourcing
involves identifying and selecting suppliers to obtain the goods or services needed for a company's
operations. Procurement, on the other hand, focuses on the actual purchasing process, including
negotiating contracts, making purchases, and managing supplier relationships.

Sourcing aims to find reliable suppliers who can provide quality products or services at competitive
prices. This involves evaluating potential suppliers based on factors like cost, quality, reliability, and
sustainability. Strategic sourcing aims to optimize these factors to enhance overall supply chain
performance.

Procurement involves executing the sourcing strategy by managing the purchasing process. It includes
activities such as negotiating contracts, placing orders, and ensuring timely delivery. Effective
procurement practices contribute to cost savings, risk management, and building strong supplier
relationships.

Together, sourcing and procurement play a crucial role in ensuring a smooth and efficient supply chain,
impacting factors such as cost, quality, and overall business performance.

2. Global Sourcing

Acquiring goods / services from the suppliers around the world to leverage global efficiencies to
production. This approach allows companies to tap into global markets to find suppliers that offer
competitive advantages such as cost savings, specialized expertise, access to new technologies, or
unique products.

Strategic Sourcing

It helps organizations get the most value from their purchasing decisions. It's a long-term, proactive
strategy that considers a business's current and future needs.

Best Cost Country Sourcing

Acquiring goods/services from the countries where costs of labour and production are lower.

3. Strategic Sourcing

Strategic sourcing is a comprehensive and structured approach to procurement that goes beyond
traditional purchasing methods. It involves analysing and optimizing the entire procurement process to
achieve long-term business goals. The primary objective of strategic sourcing is to obtain goods and
services in a way that maximizes value for the organization by considering various factors beyond just
cost, including quality, innovation, risk management, and supplier relationships.
4. Category Management

A strategic approach to procurement that involves grouping similar products into categories. It's
used to improve the efficiency and effectiveness of acquisition activities. Also enables an
organization to understand its spending patterns across all categories of products and services.

5. Demand Management

Demand management is a set of activities and processes within supply chain management that
focuses on understanding, influencing, and shaping customer demand for products or services. The
goal of demand management is to align supply chain processes with actual or anticipated customer
demand to optimize inventory levels, production schedules, and distribution plans. This helps
organizations meet customer expectations, reduce costs, and improve overall operational efficiency.