Category sourcing: developing effective sourcing strategies
3 important questions on Category sourcing: developing effective sourcing strategies
Based upon a thorough analysis of the company’s future requirements and the company’s current supply base, the future sourcing strategy needs to be decided for every spend category. Describe which issues should be addressed by this category sourcing strategy.
An important question is whether the supply base needs to be reduced or expanded and where suppliers should come from, together with what kind of relationship and contract.
Issues that should be addressed by a category sourcing strategy are the following:
-Single vs. multiple sourcing
-Global vs. local sourcing
-Partnership or competitive relationship
-Buying on contract or buying on spot basis
-Price agreement vs. performance agreement
What is category sourcing planning and which three stages are included?
Category sourcing as a concept includes three stages: ‘category planning’, ‘category sourcing’ and ‘category implementation’.
-Category sourcing plan needs a strong link to the overall business goals and strategies. Next, stakeholders must be identified, in order to effectively involve these and in a timely manner in category planning process. The analysis of current and future spends reviewed, together with current and future requirements. This is the basis for defining the targets and objectives. Than the plans will be discussed with the stakeholders. After this the contracting starts (Chapter 2).
-Category sourcing plan needs a strong link to the overall business goals and strategies. Next, stakeholders must be identified, in order to effectively involve these and in a timely manner in category planning process. The analysis of current and future spends reviewed, together with current and future requirements. This is the basis for defining the targets and objectives. Than the plans will be discussed with the stakeholders. After this the contracting starts (Chapter 2).
What's the major objective underlying in cooperation?
A major objective underlying in co-operation is to achieve significant improvements in:
-Logistics
-Quality
-Product and SC cost
-Product development
-Logistics
-Quality
-Product and SC cost
-Product development
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