What are the sourcing implementation strategies?

Each step has very specific needs and requirements that will be discussed below.

Table of Contents

STEP 1 – DATA COLLECTION & ANALYSIS.
STEP 2 – DEVELOP SOURCING STRATEGY.
STEP 3 – LEVERAGE CONSOLIDATION.
STEP 4 – RELATIONSHIP RESTRUCTURING.
STEP 5 – BEST PRACTICE EVALUATION.
STEP 6 – SUPPLIER MANAGEMENT AND REPORTING.

What is strategic sourcing process?

Strategic sourcing is a procurement process that connects data collection, spend analysis, market research, negotiation, and contracting. It stops short of the actual purchase of and payment for goods and services.

What is dual sourcing strategy?

Dual sourcing is the supply chain management practice of using two suppliers for a given component, raw material, product or service. The term dual sourcing is often used outside its strict definition to be synonymous with multi sourcing, which can be more than two.

What are the four sourcing strategies?

What’s Your Sourcing Strategy?

Outsourcing. Having suppliers provide goods and services that were previously provided internally.
Insourcing. Delegating a job to someone within the company.
Nearsourcing.
Vertical integration.
Few or many suppliers.
Joint ventures.
Virtual enterprise.

What are the benefits of dual sourcing?

Pros of Dual Sourcing

Extra Capacity. Depending on your product and chosen supplier, dual sourcing may be necessary as it increases the capacity.
Lead Times. On average, manufacturers have a lead time between shipments of four weeks.
Flexibility in Cost.
Support Different Regions.
Quality Control.
Headache.

What are the advantages and disadvantages of dual multiple sourcing?

Dual sourcing: What are the benefits (and disadvantages) of sourcing from multiple suppliers

Dual sourcing is one approach for reducing your dependence on any one supplier.
Avoid becoming dependent on any supplier.
Greater flexibility and robustness of the supply chain.
Limitations of dual sourcing.

What are the two types of sourcing?

There are a number of different definition of sourcing but mainly there are two major definitions: strategic sourcing and global sourcing.

What is a VMI program?

What is VMI? VMI is a program where the supplier manages your inventory for you. These programs helped make some of the largest retailers the giants they are today. After seeing these successes, manufacturing caught on as a way to move toward lean practices and to become a demand-driven supply chain.

Which is better single sourcing or multi sourcing?

Single sourcing, a powerful approach in a stable environment, can amplify a firm’s exposure to risk (e.g., supplier’s default) in the presence of uncertainty. Multiple sourcing, however, presents higher costs due to the management of more than one supplier.

What are the 7 Steps in strategic sourcing?

Understanding The Famous 7 Step Strategic Sourcing Process

Step 1: Profile The Category.
Step 2: Supply Market Analysis.
Step 3: Develop a Strategic Sourcing Strategy.
Step 4: Select The Strategic Sourcing Process.
Step 5: Negotiate with and Select Suppliers.
Step 6: Implementation and Integration.
Step 7: Benchmarking.

What is example of VMI?

Some Examples of Vendor managed inventory (VMI) are: Vendor not at the customer site, vendor has inventory at the customer site and periodically reviews (either remotely or physically) the inventory on hand and restocks the inventory when the vendor deems it necessary. A form of consigned inventory.

What is the difference between VMI and CMI?

The supplier is the one who reviews all information and generates order in the customer’s system. However, the main difference between CMI and VMI is that in case of CMI the order placed by the supplier is just a recommendation and is not a confirmed order unless the customer approves it.

What are the disadvantages of multiple sourcing?

Disadvantages of multiple supplier strategy higher costs for contract negotiation, management, and process execution. lower order volumes reduce bargaining power. the ability to save through economies of scale in reduced. challenges can come up in terms of quality control and efficacy.