MNP3701 Assignment 1 Semester 1 2023{211581}

Strategic Sourcing - -can be defined as an approach to supply chain management that formalizes the way information is gathered and used allowing an organization to leverage its consolidated purchasing power finding the best values in the marketplace. -Strategic Sourcing 2 - -Strategic sourcing requires analysis of what an organization buys, from whom, at what price and at what volume. -Sourcing - -The process of identifying a company that provides a needed good or service. -Strategic Sourcing 3 - -A comprehensive approach for locating and sourcing key suppliers, which often includes the business process of analyzing the total-spend by material category. -What is most important about strategic sourcing - -The focus on development of long-term relationships with trading partners who can help the buyer meet profitability and customer satisfaction goals -Strategic sourcing includes automation of: - -Request for Quote (RFQ) Request for Proposal (RFP) Electronic Auctioning (e-auction or reverse auction) Contract Management -Companies spend significant time and resources developing and implementing Strategic Sourcing initiatives to: - -Improve long-term financial performance Increase customer focus Improve product quality Reduce the cost of materials Reduce delivery cycle times Optimize the number of global suppliers. Note: for most companies, this means a reduction in the number of suppliers. Deliver more innovative products, in less time, and less expensively than competitors