5 Fundamental Steps in the Strategic Sourcing Process

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5 Fundamental Steps in the Strategic Sourcing
Process
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Strategic Sourcing Process

• Strategic procurement is one of the most
  important factors that determines the
  success and failure of any business.
• Procurement of raw materials or services requires
  following a methodological and proven process
  that ensures that the company gets the maximum
  benefits from the same.
• SmallworldIndia is a leading strategic sourcing
  services provider helping enterprise procurement
  teams realize measurable, hard-dollar savings,
  and improve their strategic sourcing

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Proper Analysis of Requirement

• Identifying exact requirements of a business is
  vital to make the right strategy for procurement
  and gain the maximum from it.
• It requires effective coordination among various
  sections of the company and clarification on
  issues related to the type, quality and urgency
  of the materials.

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Short Listing Suppliers

• Making a list of all the reliable sources and
  choosing one that provides you with the maximum
  value for money is another important step that
  should be considered for strategic procurement.
• At this stage, experts use tools like
  questionnaires, request for proposal (RFP),
  request for samples, benchmarking, bidding or
  reverse auction.

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Issuing Purchase Orders

• After zeroing in on the right supplier,
  negotiating the best deal and making contractual
  agreements, the procurement team requires issuing
  purchase orders with part payment made at this
  time.

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Receiving, Inspecting Supplies Making Payment

• As the supplier sends the desired products within
  the scheduled time, the procurement team need to
  make the complete payment of the supplies.
• Some team members should inspect supplies and
  make proper records of the same.

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Contract Ending (Dissolution) or Renewal

• Once the materials or services are procured, the
  contract comes to an end. This contract may be
  renewed or a fresh contract be signed for getting
  supplies or services from premium organisations
  as per the specific requirements on the ongoing
  projects.

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