Strategic Sourcing

In today’s changing business climate, supply chain management professionals are constantly looking for new and creative ways to reduce costs, maintain and improve the quality of the final product and ensure a faster delivery time. Strategic sourcing is one method that procurement managers can use to help achieve these supply chain goals. This is what you have look out for:

  1. Identify Suppliers

Effective supply chain managers consistently locate the best quality materials at the lowest possible cost from the most reliable suppliers. When identifying and defining alternative suppliers, it is important to keep track of logistical considerations that may make one trade partner more beneficial at certain times of the year or under certain external conditions. This allows a consistent flow of products running smoothly throughout the year, independent of external conditions.

In an evolving global marketplace, using strategic sourcing tactics to identify the best suppliers can help companies maintain efficient and effective supply chains across all company divisions and partners.

  1. Build and Improve Relationships

Identifying the best suppliers is important. However, there is more to strategic sourcing. Building a positive and long-term relationship by working closely with your suppliers can yield great results. Developing strong relationships can help sourcing professionals in meeting cost, speed-to-market and quality goals, while allowing suppliers to more efficiently tailor and deliver materials to precise purchaser specifications.

Strategic Sourcing

  1. Focus on Skills

Procurement professionals and managers interested in improving strategic sourcing skills can expand their knowledge by networking and attending seminars. Strategic sourcing is a field in constant change . Becoming proficient in this field and keeping your knowledge up-to-date, will help you understand, plan and implement a sound strategic sourcing strategy, tighten the effectiveness and efficiency of your supply chain infrastructure and reduce overall costs almost immediately.

  1. Don’t Ignore the Possibilities

The implementation of strategic sourcing requires a wide variety of skills such as:

  • Recognizing and accessing key issues, principles, opportunities, strategies and techniques.
  • Identifying internal and external challenges that affect sourcing strategy
  • Defining issues involved in global sourcing, electronic procurement, the extended enterprise, negotiations and ethics
  • Applying decision-making frameworks and problem-solving skills to determine the best course of action pertaining to the above strategy areas

The fast expansion of the global markets in recent years has made it necessary for companies to take a more serious approach to the integration of supply chain processes and overall business growth. Strategic sourcing is a specialty area whose potential and profitability is just beginning to be realized.