Managing Risks Factors in Strategic Sourcing

By and large, the most impactful aspects of strategic sourcing are that of pre-qualifying suppliers and vendors into classes of either competitive or collaborative categories. Regardless of the company’s products and services are marketed globally, supply managers need to pursue world-class performance and relationship. These relational competencies must be based on the foundation of fairness, honesty and trust. However, an overdose of strategic sourcing in the outsourcing parameters will lead to more conflict than of congruence.

Course Objectives: 
  • Be able to strategize an effective sourcing in procurement process.
  • Be familiar with supplier’s constraints weakening a firm’s sourcing objectives.
  • Be familiar with the make or buy orientation in time and capacity.
Target Audience: 
Course Methodology: 

A workshop-based seminar presentation with group assignments and case study appreciation. Complete with notes and presentation slides.

Course Outlines: 

The Development Of A Strategic Sourcing Plan

  • Executing the road map from discovery of suppliers to management of suppliers.
  • Defining the single versus multiple sourcing orientation leading to supplier’s collaboration efficiency.
  • The strategic issues of the make or buy decisions domain
  • Supplier dominance starting from post contractual lock-in’s leading to power relation unbalances between the two parties.
  • Strategic vulnerabilities from generic freedom to commoditization of products in market. Deploying core competencies in shaping a firm’s character.

The Factors Influencing The Sourcing And Outsourcing Decisions

  • Considerations of operations in favour making or buying risk point and the considerations of cost in favour the capacity rationale.
  • The dangers of sourcing in a volatility perspectives signaling the composite effect on the firm’s operative efficiency.
  • The impact of ineffective and double sourcing.

The Methods In The Administration Of Sourcing And Outsourcing Activities

  • Appointment of a chief resource officer responsible of all operation and expectation.
  • The controlling and monitoring parameters to be put in place.
  • Developing a transition back-up plan circumventing the framework of processes.

The Road To World-Class Supplier Development In Strategic Sourcing

  • Best practices in supplier management and ways to develop a supplier’s supply management system.
  • Profiling key factors in supplier and business collaboration.
  • Major generic steps commencing from a contract negotiation cycle leading to performance gaps and improvement plans

Essentialities Of Sourcing Provisions In Compliance With Goals And Objectives

  • Procurement control of purchased material from tactical matrix approach.
  • The fundamentals of core-strategic, bottled-neck, functional-modular items.
  • Planning quality information management control from pre inspection to post inspection of procured items.
  • The criteria set in the acceptance and execution.

The Elements Of Strategic Global Outsourcing In The Supply Cycle

  • Outsourcing decisions involving standardized processes, commoditized products and activities of low strategic value.
  • Financial evaluation and inter-relation significance of short term to long term in outsourcing cycle time.
  • Supplier selection and contract development in determining supplier profiles and potentials.
  • The establishing of scope of work and appropriation of pricing for the outsourcing activities.

Contract Development As The Key To Effective Governance Of Relational Issues

  • A clearly defined and elements of the processes and roles of the suppliers.
  • Understanding of an acceptable level of flexibility.
  • Considerations of provisional contractual extensions and re-negotiations.
  • An understanding of ground rules encouraging relationship and alliance maintenance.
  • Determination of activity and process in measuring performance.

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