Sourcing & Procurement
Sourcing & Procurement Specialist
We assist companies in effecting more efficient sourcing processes to save costs and maximize profitability. Negotiate with suppliers to obtain goods, materials, and services at the best prices by using strategic sourcing & Procurement strategies and extensive knowledge of their commodity industry.
- Finding quality sources of goods and services
- Negotiating contracts
- Establishing payment terms
- Market research
- Testing for quality
- Considering outsourcing for goods
- Establishing standards
Sourcing & Procurement in supply chain
If done well, sourcing allows companies to establish consistent supply chains. Additionally, this keeps your Manufacturing plants running and your customers happy.
Why is Sourcing Important ?
Strategic sourcing skills play a critical role in the cost structure and competitiveness of small and large businesses. These skills involve analyzing high-volume purchases and developing long-term partnerships with a select group of suppliers capable of providing quality products and services at low costs.
Cost Management
Strategic sourcing provides benefits for both buyers and suppliers. Buyers can typically negotiate lower unit pricing for high-volume purchasing. As a result, this reduces the costs of goods and keeps retail prices competitive. Suppliers benefit because they have a consistent outlet for their products. Therefore, making planning and cash flow more dependable.
Supply Stability
When you find the right source for your products, it truly becomes a partnership. Both businesses rely on each other to keep the supply chain intact. Developing a close relationship can lead to higher quality (and efficiency) as suppliers and customers work together to identify and minimize the root causes of any defects that hurt both buyer and seller.
Managing Risk
Besides identifying and solving problems, a strong relationship built on trust can help mitigate risk. When both parties know they can depend on each other, it opens the door to honest conversation. For example, if one party has temporary cash flow concerns, it can be discussed openly. Therefore, lowering the risk for both parties
How to Conduct Sourcing
If companies handle the sourcing themselves, there’s no shortcut. Selecting a supplier requires proper research and strategy.
Selecting a supplier as the source for your goods means investing the time and effort to get to know them and ask the tough questions. After all, it’s the reputation of the business that’s at stake. Companies need to do business with suppliers that will ensure their products will deliver the best results.
Here are some characteristics to look for when choosing a supplier:
- Years of experience
- Flexibility in changed order times
- Wide range of available products and/or services
- Negotiable prices
- Customer reviews
- Prompt delivery times
- Accommodating customer service
- Financial stability
It’s important to remember when you’re choosing a vendor – you are selecting a business partner. It needs to be someone you can trust and rely on now and in the future. Vendors make a monumental impact on your business, so choose wisely.