Sustainable Sourcing Strategies Deliver Business Objectives
For businesses to achieve strategic sourcing objectives there needs to be a clear and concise strategy that is agile, sustainable and lean that will maximise category value and margin, limits global supply risk safeguarding product demand objectives, and meet social compliance, environmental and product quality goals.
Strategies are End-2-End, focused on generating opportunity through value lead partnerships with suppliers delivering capability, capacity, lead-time and margin advantages.
Development of sourcing strategies is a process of continual improvement and re-evaluation managed through tools such as;
- Category short and long-term development plans influencing product capability need and capacity demand planning.
- Supplier Matrix defining the suppliers network capability and capacity to meet current and future demand, mitigating potential risk, and opportunity testing.
- Score Carding reporting supplier status, readiness for scaling, descaling or replacement. Management of corrective action improvement plans.
- Costing framework defines the overall pricing competiveness across region, supplier category that tracks key cost denominators and purchase price variance.
- Global trends and regional capability, pricing and TCO influencers movements.
Read more about Supplier Matrix; http://wp.me/p7z4o2-GV
Read more about Score Carding; http://wp.me/p7z4o2-H8
Read more about Costing Framework; http://wp.me/p7z4o2-Hj
Read more about strategic sourcing and TCO influencers; http://wp.me/p7z4o2-Gr
Solid tools supported by IT infrastructure, facilitate the ever-evolving sourcing strategy wanting constant administration and re-evaluation. The tools in total report business, category outcomes and objectives while managing the needs versus suppliers’ capability and capacity, creating a synergy that engages End-2-End sourcing improvement.
Collaboration with business stakeholders through category, supply chain, finance and external partners are essential to ensuring information is learned, shared and influencing outcomes necessary to drive sourcing strategies and roadmaps.
Suppliers are your core partners in the delivery of sourcing business objectives through sharing, influencing and mutual long-term supply agreements tied to performance objectives that achieve longer term strategy goals.
A clear sourcing strategy engages collaboration, partnerships, benchmarking, performance reporting and continual improvement that maintains pace with business objectives and ensure sustainable value-lead supply.