Managing the purchase order process through raising, delivery receipt and invoice processing is critical to reducing fraud. Fraud is a supply chain related category that should not be ignored, as reported in the Kroll Global Fraud Report 2013, and has affected 70% of all companies surveyed. Procurement fraud is a key contributor in those companies affected.
Supply Chain Solutions No.11 – Are the Suppliers Sample and Development facilities capable of meeting your Product Mix?
There is a substantial number of small to medium manufacturers that are not geared to handling a high product mix in sampling and development. Understand the supplier’s sampling output per month versus your demand.
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.
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.