{"id":454,"date":"2013-11-13T12:33:49","date_gmt":"2013-11-13T12:33:49","guid":{"rendered":"http:\/\/bisk-preprod.go-vip.co\/msu\/2018\/05\/10\/why-companies-should-consider-strategic-sourcing\/"},"modified":"2021-02-03T18:50:54","modified_gmt":"2021-02-03T18:50:54","slug":"why-companies-should-consider-strategic-sourcing","status":"publish","type":"post","link":"https:\/\/bisk-preprod.go-vip.co\/msu\/resources\/supply-chain\/why-companies-should-consider-strategic-sourcing\/","title":{"rendered":"Why Companies Should Consider Strategic Sourcing"},"content":{"rendered":"

In today\u2019s competitive business climate, supply chain management professionals<\/a> are constantly seeking out creative ways to reduce costs, assure and improve the quality of the final product and achieve a faster time to market. Strategic sourcing<\/a> is one part of overall procurement management<\/a> that can help achieve these supply chain goals. Here\u2019s how it works:<\/p>\n

1. Identify Suppliers<\/h2>\n

Effective procurement specialists<\/a> and managers consistently locate the best quality materials at the lowest possible cost from the most reliable suppliers. When identifying and defining alternative suppliers, it is important to keep track of logistical considerations that may make one trade partner more beneficial at certain times of the year or under certain external conditions. This allows a consistent flow of products running smoothly throughout the year, independent of external conditions.<\/p>\n

Another important consideration when identifying suppliers is competitive differentiation opportunity. Using a specific supplier that has a positive brand image with your consumers can create an excellent product differentiation opportunity, potentially leading the consumer to prefer your product over others. Common examples of this include the \u201cIntel Inside\u201d logo on personal computers and the \u201cWith 100% Sun-Maid California Raisins\u201d seal that Post Cereals included on their Raisin Bran cereal package.<\/p>\n

In an evolving global marketplace, using strategic sourcing tactics to identify the best suppliers can help companies maintain efficient and effective supply chains across all company divisions and partners.<\/p>\n

2. Cultivate Relationships<\/h2>\n

Identifying the best suppliers is important. However, there is more to strategic sourcing. Cultivating a positive and long-term relationship by working closely with your suppliers can provide many win-win scenarios. Developing solid relationships can help sourcing professionals become better at meeting cost, speed-to-market, and quality goals, while allowing suppliers to more efficiently tailor and deliver materials to precise purchaser specifications.<\/p>\n

We are now in an era where consumers can, in great part, drive the success of a company through their awareness and demand for ethical business practices. Creating and cultivating relationships with consumer-friendly suppliers creates opportunities for your company to improve product and company image via PR and marketing communication with consumers. Classic examples are Starbucks\u2019 and Nespresso\u2019s sustainable coffee programs and Patagonia\u2019s organic cotton program.<\/p>\n

3. Continuously Improve Skills<\/h2>\n

Procurement professionals and managers interested in maximizing strategic sourcing skills<\/a> can expand their knowledge by taking online courses taught by industry leaders. Strategic sourcing is a field in constant development. Becoming proficient in this field and keeping your knowledge up-to-date, will help you understand, plan and implement a sound strategic sourcing strategy, tighten the effectiveness and efficiency of your supply chain infrastructure and reduce overall costs almost immediately. At the same time, a sound strategic sourcing strategy can create opportunities for your company to improve corporate image, increase sales and market share, and reduce costs.<\/p>\n

4. Understand and Embrace the Possibilities<\/h2>\n

The implementation of strategic sourcing requires a wide variety of skills. Some of the top competencies needed to excel in making the most of a company\u2019s strategic sourcing decision-making process include:<\/p>\n