There will be a sales person assigned to your account; it is important to understand who this person is managing your business on a daily basis. They will become the backbone of the vendor relationship and key to your projects and future success.
Supply Chain Solutions No.7 – When reviewing price look at the End to End cost “Total Cost of Ownership”
As per sourcing Tip #6, we are all tempted only to look at the vendor price alone, but there are additional factors which must be considered to determine the “Total Cost of Ownership”
Everyone is tempted to select a vendor purely on price, but it is only one factor in the evaluation process. You should never select a vendor based solely on price.
Select vendors that have specific experience with the type of project that you’re undertaking, having technical expertise and capabilities unique to the market, brand and product. You don’t want to be a vendor “guinea pig.”
Once the sourcing project is defined and finished product or raw material specifications, quantity, target pricing and timeline established. It is time to source a vendor that matches your business and brand need.
Define a low-cost country sourcing plan that delivers cost reduction and meets quality objectives. Business typically gain a 10-35% cost savings through low-cost country sourcing.
Clearly, define the sourcing project scope with clear milestones and objectives. Success driven sourcing activities are projects that need a clear statement of what you and stakeholders want to accomplish.
Sourcing begins with a vision of defining objects that services the greater need of the commercial enterprise, brands, product categories and raw materials. If you don’t know the business and subcategory vision, you will not be able to achieve all needs.