How do you develop a sourcing strategy in procurement?

How do you develop a sourcing strategy in procurement?

Understanding The Famous 7 Step Strategic Sourcing Process

  1. Step 1: Profile The Category.
  2. Step 2: Supply Market Analysis.
  3. Step 3: Develop The Sourcing Strategy.
  4. Step 4: Select The Sourcing Process.
  5. Step 5: Negotiate and Select Suppliers.
  6. Step 6: Implementation and Integration.
  7. Step 7: Benchmarking.

What are some procurement strategies?

Five winning procurement strategies

  • Simplifying the purchasing chain.
  • Managing supplier risk.
  • Consolidating the supplier database.
  • Establishing predictive analytics capabilities.
  • Incorporating the department into the company’s collective innovation system.

What are the types of sourcing in procurement?

Different Types of Sourcing Methods

  • Low-cost Country Sourcing.
  • Global Sourcing.
  • Prime/Sub Arrangements.
  • Captive Service Operations.
  • Conventional Agreements.
  • Operational.
  • Professional Services.
  • Manufacturing.

What are the six supplier strategies?

Six Simple Strategies Suppliers Can Use To Do More For Their…

  • Focus First on Your People.
  • Listen to Your Customers.
  • Focus on Lead-time Reduction.
  • Understand Your Vision and Have a Plan.
  • Share Expertise with Customers.
  • Market to OEM Customers How You Manage Risk.

What are examples of sourcing strategies?

Some sourcing strategies to consider:

  • Outsourcing. Having suppliers provide goods and services that were previously provided internally.
  • Insourcing. Delegating a job to someone within the company.
  • Nearsourcing.
  • Vertical integration.
  • Few or many suppliers.
  • Joint ventures.
  • Virtual enterprise.

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