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"Strategic Sourcing"| Why It Is Important?
Strategic Sourcing is the identification of potential suppliers and possible partnership. This is a key, value added activity when it comes to business. It ensures that these are professionals you can truly rely on and trust in your partnerships. Advanced analytics and market intelligence, supplier performance information, and essential vendor qualification information are vitals which ensure your company gets access to only top-notch resources for your business.
Successful suppliers regularly engage in strategic sourcing initiatives which help them determine purchasing requirements, establish acceptable criteria and develop strong long-term relationships with their customers. Sourcing strategies can vary in scope based on the many ways of delineating what it means to leverage spending across different global regions, departments, business units and goods.
Active integration with suppliers is an essential part of strategic sourcing and understanding the transactional objectives; will help procurement teams work proactively towards maximising the accuracy of purchase orders. Things that should be evaluated before implementing any sourcing plans are your spend pattern analysis through a direct and indirect spend analysis. You can identify those areas that would save money or support your overall goals for the entire organisation!
“Achieving production and distribution improvements in supply chain logistics requires a combination of innovative thinking and collaboration focused on realistic, precise execution.”