Strategic Sourcing

Sourcing Cycle

1 Recognition of Need Needs Vs Wants 2 Understanding / Development of Specification – Technical & Performance requirement / Quantity / Quality / Delivery / Packaging / Service / Budget 3 Find Potential Source 4 Analyse Supplier – Proposals / Capabilities 5 Select Supplier – Negotiation Supplier Evaluation 6 Contract / Ordering / Delivery / Payment – Administration 7 Performance…

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Strategic Sourcing

Supplier Scorecard

Supplier Scorecard is we used to measure suppliers, and to give qualified or certified status to suppliers. Ideally, The best scoring suppliers per commodity group would get more share in the order. 1) Quality Monthly DPMO (defective parts per million opportunities) = Monthly Quantity Rejected รท Monthly Quantity Received x 1,000,000Rolling three-month DPMO to track trending = Rolling 3-month Quantity…

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