Fm roles and responsibilities in sourcing processes. Jul 28, 2020 the strategic sourcing process begins with a welldeveloped and properly implemented strategic sourcing plan. As mentioned, strategic sourcing is an approach in procurement and supply chain management that differs from traditional practices. Sourcing management syllabuscourse information spring 20 jan 9, 20 mar 1, 20 bqom 25341040 21180 tu 6. Written by olivier bruel, professor emeritus hec paris, and a team of contributing experts from academia, consulting and industry, the book is organised into four parts. Strategic sourcing as a competitive differentiator companies often overlook the use of vendors as a strategic option to help meet their business goals. Strategic sourcing, supplier selection, methods for supplier selection, the swedish. Strategic sourcing is a method of managing procurement processes for an organization in which the procedures, methods, and sources are constantly re. Published in association with the chartered institute of purchasing and supply cips, this book is ideal for undergraduate and masters students of purchasing and supply and is especially suitable for cips graduate diploma students taking the unit in purchasing and supply chain management 1. Supply management strategic sourcing sathit parniangtong. Strategic purchasing and supply chain management book description. Sourcing is a critical activity used at both tactical and strategic levels. Strategic sourcing for vendor management results in flexibility, simplicity, and reduced costs. About strategic resource use and category management in order to use the universitys purchasing power for penns greatest benefit, purchasing services.
By building sourcing process excellence and aligning capabilities with the requirements of the corporate buy, procurement can have a key role in the corporate quest for value growth. Cisco it case study business management vendor management. This book takes a process approach of identifying, evaluating, selecting, managing and developing suppliers to create more value for customers. In an increasingly competitive and technological environment, investing in supplier relationships and management has become more important than ever. In contrast to traditional purchasing, such practices were not followed which consequently led to a lack of visibility, opportunities for. Challenged procurement and sourcing functions pandemic and supply failure uncovered strategic importance of sourcing and procurement functions and their influence on risk management postcovid collaborating with it, finance and operations is vital in developing a procurement function of the future objectives adjust to economic realities and. Your answers to the following questions can have a significant impact on your business performance. What it is what it is not focused on the total cost of ownership tco incorporating. New approaches of strategic sourcing in procurement management. It improves efficiency and quality through building a robust, diverse supply base. Rather, strategic sourcing is one of the tools used by category teams to manage pro curement expenditure to achieve mission value.
This case study describes the creation of a global vendor management office vmo within cisco. May 03, 2019 strategic sourcing and category management examines how ikea and other cost leading companies use category management to create advantages with direct and indirect sourcing. Strategic sourcing manager resume samples qwikresume. Targeting on costeffective way of spending, the managers take charge of various other roles and responsibilities such as locating and analyzing new opportunities, leading conversion management, dealing with variety of vendors and suppliers and. Category management is a strategic approach to procurement where organisations segment their spend into areas which contain similar or related products enabling focus opportunities for consolidation and efficiency. Thanks for your interest in the strategic sourcing manager position. Streamline the rfq process and quickly select the most qualified vendors based on the exact criteria you specify. Strategic sourcing analyst resume samples qwikresume. Strategic sourcing management examines procurement and supply management in detail, covering the three dimensions of competitiveness, effectiveness and efficiency. Pdf strategic purchasing and supply chain management. Strategic sourcing for a competitive advantage in the.
Dec 06, 2008 strategic sourcing is evolving traditional purchasing strategic sourcing global supply management admaopco paradigm transaction project enablement focus price, transaction management, compliance supplier rationalization, spend consolidation, cycletime reduction, standardization balancing total system cost. Explore the leading edge of procurement and supply management practices. Supplier relationship management srm identifying and. Meanwhile, while sourcing and supply chain management are increasingly viewed as strategic by csuite executives, leaders of these functions often find themselves with organizations that are not fully equipped to deal with the challenges and opportunities they confront. Agenda strategic sourcing 101 strategic sourcing sb successes category management 101. Strategic sourcing is complex, and choosing the right sourcing approach can be challenging. Managers, who are subjected to competitive pressures, make efforts to shape supply chain strategies based on the competitive environment they are engaged in. Pdf the role of strategic sourcing on global supply chain. The role of strategic sourcing on organizations performance. The purpose of this paper is to aim to delineate the domain of, and operationally test, strategic sourcing orientation sso. Pdf strategic sourcing dr ramakrishnan ramachandran. They identified competitive advantages in the integration of critical suppliers for streamlining order management, replenishment and fulfillment, inventory management, and engineering change management. Strategic sourcing sourcing capabilities v1 top management emphasizes the strategic role of sourcing function v2 sourcing longrange plan includes developing relationships with key suppliers v3 sourcing function has active interaction with other functions e. Unfortunately, much of the writing about strategic sourcing conflates it with category management, creating some.
An organizations strategic sourcing decisions determine where and how it procures products and services. Jan 04, 2019 strategic sourcing is the process a business uses to allow procurement to take the lead in satisfying business needs. Brands are seeking to develop clear goals and metrics aligned around desired supply chain outcomes. Download full strategic purchasing and supply chain management book or read online anytime anywhere, available in pdf, epub and kindle. Strategic sourcing is a collaborative process that allows an organization to align purchasing power with its overall value proposition. Revisiting the core principles of strategic sourcing. Strategic procurement can be approached from three main dimensions namely. Equipment life cycle management elcm is streamlining the equipment life cycle process for nonexpendable nx equipment across veterans health. Strategic sourcing and purchasing professional with over fifteen years combined experience in areas of strategic sourcing, contracts, purchasing management and supply chain. Mon, 24 apr 2017 as we all know, that identifying and locating suppliers is relatively simple, but it becomes more complex as the amount of unique raw materials, ingredients, parts, components, connectors, apparatus, products, equipment, supplies. Development and management of key suppliers, internal operation of procurement function and. Nov 06, 2016 as strategic sourcing incorporate strategic dimensions and capabilities of suppliers such as emphasis on quality management practices, process capabilities, design and development, and cost reduction capabilities into the decisionmaking process it is possible for firms to achieve accurate information and bestin class market results beaty, 20. Key performance indicators for responsible sourcing. Category management may involve the splitting of direct and indirect products or.
The strategic sourcing directors board ssdb serves as the primary strategic sourcing communication link across the dod community for policy and guidance related to strategic sourcing. The first three steps involved in the strategic sourcing are. Next, the book details strategic sourcing methodology. The integration of procurement and corporate strategy is reflective of the transformation of purchasing to supply management. The ultimate guide to strategic sourcing planergy software. Workday strategic sourcing, strategic souring, cloudbased strategic sourcing created date.
The concept is created to help supply chain managers and practitioners to improve, develop and implement strategic sourcing strategies. Dr r ramakrishnan chief consultant, vivin consultants, iii mailing address. Strategic sourcing is a vital component, with realworld impact on all facets of a business, from supply chain to final product and service delivery. Workday strategic sourcing enterprise management cloud. The strategic sourcing initiative of identifying a few. Development and management of key suppliers, internal operation of procurement function and coordination of purchasing with other functions within the firm, and efforts to meet or exceed customer expectations. With it, procurement can find ways to save money while also adding value.
Strategic sourcing and supplier selection strategic purchasing is defined as the process of planning, implementing, controlling, and evaluating highly important purchasing in an effort to meet a firms goals carr and smeltzer, 2000. Strategic sourcing and procurement of facilities management. Third party content, products, and services disclaimer this software or hardware and documentation may provide access to or information on content, products. It might seem like a daunting endeavor, but creating and implementing such a plan doesnt have to be an obstacle to your companys longterm success. Strategic sourcing can be taken to new levels and applied to the business designs that will shape corporate revenue realization as well as competitive cost position. The scope of strategic sourcing extends beyond supplier price negotiation and takes into account the total cost.
Abstract strategic sourcing is growing at a rapid rate throughout the world because. Strategic purchasing and supply management it might also provide a. It begins by outlining the mental shift necessary to build robust relationships with suppliers. Create free account to access unlimited books, fast download and ads free. Simon s trategic sourcing as defined in the may 25, 2005memorandum issued by the office of management and budget is the collaborative and structured process of critically analyzing an organizations spending and using this information to make busi. Strategic sourcing practices, the case study of paul bakery uk. By managing the process centrally, you can identify and compare suppliers, evaluate quotes, send notifications, and make a more strategic selection in less time.
Strategic sourcing is a well established and proven method for. From this perspective, strategic procurement management is not an event, but an ongoing process that involves the interaction of purchasing professionals with suppliers, and the management arm of the organization. Sourcing strategy strategic operations planning chandra prakash 1012021 failed sourcing. Managing and partnering with suppliers is important from sourcing through procurement. Strategic sourcing and category management pdf squarespace. Indicators and metrics are an essential tool for companies to demonstrate the value of responsible sourcing both internally and externally.
It involves internal collaboration with stakeholders and suppliers, as well as critical analysis of spend, and supplier risk management. Strategic sourcing is a method of managing procurement processes for an organization in which the procedures, methods, and sources are constantly reevaluated to optimize value to the organization by allowing them to buy more effectively and efficiently. Workday strategic sourcing is a collaborative,\rcloudbased solution that makes sourcing a truly strategic arm of the business\rby providing greater visibility throughout the entire sourcing and supplier\rengagement process. Strategic sourcing and supplier relationship management. One example of strategic sourcing is the commodity sourcing strategy, which focuses on developing a specific sourcing strategy for a category or group of supplies or services. Unfortunately this position has been closed but you can search our 1,128 open jobs by clicking here. This is just one application of strategic sourcing.
Journal of global operations and strategic sourcing link to article, doi. A major step in strategic sourcing is to conduct a spend analysis, which identifies strategic sourcing opportunities. Choosing which resources and capabilities to develop internally and which to procure externally requires an understanding of the firms business and operations strategies, its current and potential operational profile, and any external threats or opportunities. With 25 years experience from ikea, where he had the responsibility to develop and execute the companys purchasing strategy, author magnus carlsson shares his. View improving acquisition through strategic sourcing. From a theoretical perspective, strategic sourcing is viewed by top management as an important resource of a firm which can be utilized to create or develop the firms unique and inimitable resources and capabilities to maintain or increase the firms competitiveness dobrzykowski et. After realising the contracted savings, category teams and buyers jumped on the following sourcing initiative while neglecting the implementation and management drive market and company standardization business strategy accelerate innovation through partnerships reduce spend. For banfield 1999 5, strategic sourcing is a management process used to systematically assess purchasing requirements across a com pany and identify opportunities, both internal and external, fo. Strategic sourcing management a multiple criteria decision support. Strategic sourcing initiatives fssi, 10 may 2015 and 29 jul 2015 dasa p sign mou with gsa for oasis services and discount, 16 march 2015 secarmy renewed army strategic sourcing charter, 31 july 2015. The paper investigates a strategic sourcing and procurement. Management fm and how it can contribute to a sourcing decision that combines the benefits of internal and external provision with consideration of business risk and cost. It is concerned with what needs to be purchased, why, when and where.
Fundamental to the ssdb is sharing strategic sourcing best practices and lessons learned. Strategic sourcing strategic sourcing is it a variant of lean six sigma. The board is chaired by the deputy director, dpapss. This research includes a spend analysis on the nps contracting office, using data from fy2012. There are important reasons why strategic sourcing is a smart move for organizational success. Strategic sourcing manual louisiana division of administration. Pdf strategic procurement management lecture notes by. Its a more formalized and streamlined method for an organization or team to gather relevant information that can be used to their benefit.
Strategic sourcing is key for successful global supply chain management. Strategic sourcing reflects the integration of procurement or sourcing strategy with corporate strategy porter 1998. The role of a strategic sourcing manager is vital for the firm as these managers are responsible for the way the company spends its money. Unfortunately, much of the writing about strategic sourcing conflates it with category management, creating some misunderstanding about how the two are related. Click get books and find your favorite books in the online library. Strategic sourcing management by bruel, olivier ebook.
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