scm

• Strategic Sourcing is a collective and organized approach to supply chain management focused on leveraging purchasing power for optimal market value.
• Collaboration with cross-functional teams and suppliers is crucial for success in modern supply chain management.
• Strategic Sourcing is a sourcing method that involves applying different strategies while sourcing products or services.
• The strategies are selected based on real-time circumstances of each acquisition and influenced by factors such as the value of spend, risk in the category, and the supply market character.
• The Six "Rights” involved with Sourcing are Right Price, Right Quality, Right Quantity, Right On Time, Right Source, and Right Place.
• Quality over Price should be emphasized in supplier selection for meaningful procurement.
• Focus on quality and life cycle costs to minimize overall expenses.
• General Motors led the way in implementing systematic strategic sourcing in the 1980s.
• Strategic sourcing involves an organized, fact-based, and cross-functional approach to procurement.
• The first step in strategic sourcing is an internal assessment understanding current purchasing processes and categories.
• The second step in strategic sourcing is creating teams to analyze spend profiles.
• The third step in strategic sourcing is a detailed review of expenditure to identify potential savings opportunities.
• Strategic Processing Step 3: Collect Supplier Information aims to minimize risks and costs by gathering supplier data to make informed decisions.
• Strategic Processing Step 6: Negotiate/Select Suppliers involves forming a team with diverse expertise for effective negotiations.
• The process of Certification begins with evaluating supplier performance, leading to certification for quality.
• Benefits of Strategic Sourcing include improved cost structures, enhanced operational performance, and higher product quality.
• Strategic sourcing revolutionizes procurement, resulting in improved cost control and quality.
• Challenges in Implementing Strategic Sourcing include gaining management support and talent acquisition and retention.
• Identifying Supplier Universe involves recognizing potential suppliers based on market analysis.
• Strategic sourcing is a critical component for businesses aiming to thrive in today's competitive market.
• Strategic Processing Step 5: Evaluate Suppliers' Bids involves defining criteria for assessing suppliers and their bids.
• Strategic Processing Step 7: Implement Recommendations involves outlining plans for implementing sourcing strategies and continuously assessing supplier performance for ongoing improvement.
• Strategic Processing Step 4: Develop Sourcing Strategy involves identifying sourcing levers and selecting suppliers through competitive processes.
• Benefits of Supplier Certification include reduced testing, improved quality, and preference in competitive bidding.
• The fourth step in strategic sourcing is conducting a market assessment, which involves analyzing the external supply market and understanding the dynamics and trends of the external supply market.
• SCM - Supply Chain Management
• Historical Perspective: Shift from traditional purchasing agent roles to modern supply chain management with cross-functional and cross-location teams.
• Shift towards Cross-Functional Collaboration: The profession has transformed from isolated purchasing to collaborative supply chain management.
• Emergence of Strategic Sourcing: Companies have started focusing on long-term relationships with suppliers rather than short-term transactions.
• Minimizing Costs through Quality Focus: Focus on quality and life cycle costs to minimize overall expenses.
• Quality over Price: Emphasizing quality over price in supplier selection for meaningful procurement.
• Strategic Sourcing is the core pivotal activity for purchasing and supply management professionals and requires extensive knowledge and competence.
• In Organized, sourcing is part of an ongoing enterprise process covering all spending categories for materials and services. It is systematic and suppliers are invited to be part of the process.
• In systematic, the process is regularly reviewed to incorporate new sourcing tools and approaches, new supplier market opportunities and developments in benchmarking and best practices.
• In Collaborative, Strategic sourcing teams are cross-functional, so suppliers must meet with a group that is armed with facts and looking at more than price.
• Strategic sourcing is organized because of the necessity of some methodology or process.