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Strategic Sourcing
Strategic Sourcing
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What is Strategic Sourcing ?
2
Supply Market Analysis
3
Develop the Strategy
4
Select the Sourcing Process
5
Negotiate & Select Suppliers
6
Implement & Integrate
7
Benchmark & Track Results
Strategic Sourcing rocesses P
Understanding everything about the spend category is the initial step in the strategic
sourcing process.
:
This involves
→d efining the category and its commodities, i entifying users and their locations,
→ d
k
Step 2 - Supply Mar et Analysis
Non-critical
items
Bottleneck items
vendors based on risk and profitability.
Low
Determine where and how to buy to minimize risk and cost. Consider current and
potential suppliers, align with business objectives, and set tailored selection criteria.
R
The most common sourcing method is using a equest for roposal ( P R P process
F )
7 B
Step - enchmar k & Track Results
Benchmark the current status of the commodity or category, monitor results, and
ensure full value is achieved.
q
Re uest the Supplier Information and Identify the Selection Criteria
Cost Savings: Lower costs are achieved through volume discounts, improved
negotiations with suppliers, and streamlined processes.
P
Improved Quality: roduct and service quality are ensured through rigorous supplier
evaluation and ongoing performance monitoring.
Supplier Collaboration : Closer collaboration with suppliers fosters innovation, fle ibility,
x
and responsiveness.
:
Resistance to Change Internal stakeholders may resist moving away from traditional
procurement practices.
G : Managing
lobalization sourcing activities across diverse regions with varying
regulations, cultures, and market conditions poses challenges.
How to Improve Strategic Sourcing?
z : S
Utili ing Technology Embrace e ourcing tools to automate tasks, improve
:
Focusing on Innovation Encourage suppliers to collaborate on new product