How do you develop a strategic sourcing plan?

Following these steps will produce the best results:

1. Understanding the category. Clearly define the sourcing category or commodity.
2. Know the supply market.
3. Develop a sourcing strategy.
4. Select a suitable sourcing process.
5. Selecting a supplier and negotiating terms.
6. Implement and integrate.
7. Reporting and tracking results.

What is strategic sourcing and how does it work?

Strategic sourcing is one part of overall procurement management that can help achieve these supply chain goals. Here’s how it works: 1. Identify Suppliers . Effective procurement specialists and managers consistently locate the best quality materials at the lowest possible cost from the most reliable suppliers.

What is strategic sourcing and why is it important?

To summarize, strategic sourcing plays an important role in the procurement cycle as it aggressively focuses on identifying actionable insights that empower the senior management to take well-informed decisions at the right time, leading to accelerated cost reduction, increased cash flow and a better ROI.

What are the steps in the strategic sourcing process?

Strategic Sourcing is the first step in setting up the supply chain. This involves identifying,qualifying and selecting the optimal supplier for each part and assembly. The lifecycle of the strategic sourcing process is as follows: Asess and develop preferred supplier characteristics. Supply market evaluation. Identify potential supplier candidates.

What are strategic sourcing strategies?

Strategic sourcing is a business activity in which a tactical method is used to procure materials required for consistent, high-quality supply-chain management. In strategic sourcing, a business gathers market intelligence on how to obtain supplies from reliable vendors in a cost-effective manner.