Sourcing Strategy and Supply Market Analysis
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The intent of this module is to provide participants with the information and knowledge to learn how strategic sourcing is critical to successful procurement outcomes, understanding the elements that go into a situation analysis for strategic product purchases, and finding a most efficient way to complete a rich situation analysis. The module will also provide participants with the knowledge to use strategic sourcing tools like Porter’s Five Forces, PEST (Political, Economic, Social, Technological) and SWOT (Strengths, Weaknesses, Opportunities and Threats).
Customer and business requirements
- What do our customers need and what does the business need?
- Historical usage analysis of goods or services
- Supplier positioning
- Supplier historical analysis
- Transaction cost analysis
Future spend analysis
- Forward/expected usage of goods and services
- Trends in the market.
- Assessment of the market capability
- Analysis of power dependency in supply chains
- Analysis of individual marketplaces
- Supplier preferencing
- Relative positioning of your organisation
- The nature of the market – appropriate type of sourcing strategy – global, regional or local
Consolidate data and generate options: Develop sourcing plans
- Risk analysis
- Make/buy options; dual/single source decisions; feasibility of starting up partnerships with suppliers; benefit sharing
- Selection of option – business case, ROI Specification development
- Developing processes for supplier selection and performance criteria
- Producing and managing the sourcing process, conducting negotiations and recommendation of contract award