Developing a costing framework that is transparent and works across the global sourcing organisation to capture total cost of ownership is key to enabling supplier price benchmarking, mitigating margin risk across the supply chain and delivering profitable sourcing.
Supplier Score-Carding is a continuous improvement tool that manages suppliers through benchmarking, and is a core enabler of the supplier sourcing strategy and the supplier matrix.
Building and improving a reliable supplier matrix that supports business and category objectives is a critical tool in driving a sustainable sourcing strategy.
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.
Delivering strategic sourcing improvement doesn’t just come from finding new suppliers, it starts internally with understanding the business strategy and direction, market intelligence on competitors, customer direction and historical analytics.
Amongst experienced sourcing professionals, there is always a stigma about using a Chinese Trading Company, with the preference been to go directly to the source manufacturing unit.
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.