Greetings I’m Suriya Kumar, Pursuing MBA at Amrita School of Business. This blog is about my learning about the detailed steps that has to be involved in selecting a strategic supplier.
Step 1 - Profile the Category
Understand all about the spend category is the first step in the strategic sourcing process. This means defines the category and commodities in it.
Step 2 - Supply Market Analysis
Identifying the potential global and local supplier. Studying the cost components of the product or service, and analyze the suppliers’ marketplace for risks and opportunities.
Step 3 - Develop the Strategy
Deciding on where to buy while minimizing risks and costs is all about developing the strategic sourcing strategy.
Step 4 - Select the Sourcing Process
Using RFP, RFQs for analysing the costs, legal, financial, ethical and sustainable terms and conditions
Step 5 - Negotiate & Select Suppliers
Fix goals and usage of Tactics to negotiate the clarifications and specifications about the product
Step 6 - Implement & Integrate
Notify the successful suppliers and ensure that they are involved in the implementation process.
Step 7 - Benchmark & Continuous improvement
Ensure the process is sustainable and in line with the benchmark practices.
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