Sunday, October 11, 2020

7 Step Strategic Sourcing Process

 

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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