Description
It also includes strategies like joint cost reduction initiative, target costing, supplier involvement in design and planning and process innovation
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CORE COMPETENCE SCARCITY OF SOURCES LIMITATIONS OF EXISTING SOURCES -TECH CAPABILITY AND TECHNOLOGY LEVEL -CAPACITY TO MEET DEMAND -CONSISTENCY OF QUALITY -COST COST REDUCTION -MAKE OR BUY OPTIONS -DISTANCE FROM EXISTING SOURCE GLOBAL SOURCING IMPERATIVES GOVT. REGULATIONS / INCENTIVES LOCAL ASPIRATIONS SPECIALISATION AND SOPHISTICATION FLEXIBILITY IN ADOPTING CHANGE PEOPLE MANAGEMENT
HIGH
LOW
ECONOMIC OPPORTUNITY RELATIVE VALUE
HIGH
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PRODUCT STANDARDISATION ORDER VOLUME/OPTIMIZATION EFFICIENT PROCESSING INVENTORY OPTIMIZATION PAPER LESS ORDERING SYSTEMS CONTRACTING CREDIT CARDS PROCESS AUTOMATION MIN RESOURCE
NUISANCE / ROUTINE ITEMS
SOURCING STRATEGY SEGMENTED PURCHASING STRATEGY AND VENDOR GROUPING
HIGH
LOW LOW
NUISANCE ITEMS •MINIMISE ATTENTION •AUTOMATE AUTOMATE ECONOMIC OPPORTUNITY
HIGH
VALUE
FEATURE LESS SUPPLIERS LOW BUYER STRENGTH. VOLUME INSURANCE AT COST PREMIUM. INVENTORY HOLDING LTC VENDORS.RETENTION ALIGN PROCESSES CONTROL OVER VENDOTR ITEM SPECIFICATION GLOBAL SOURCING. BACK UP PLANS. BOTTLENECK ITEMS
SOURCING STRATEGY SEGMENTED PURCHASING STRATEGY AND VENDOR GROUPING
HIGH
BOTTLENECK ITEMS •LTC •ALIGN PROCESSES ENSURE SUPPLY
NUISANCE ITEMS •MINIMISE ATTENTION •AUTOMATE ROUTINE
LOW LOW
ECONOMIC OPPORTUNITY
HIGH
VALUE
MORE SUPPLIERS ,HIGH BUYER STRENGTH. EXPLOITATION OF FULL PURCHASE POWER. NEGOTIATION STRATEGIES VENDOR SELECTION . PRODUCT SUBSTITUTION TIN-BOTTLE-CARTON-POLY PACK
TARGET PRICING
ORDER VOLUME OPTIMIZATION LEVERAGE ITEMS
SOURCING STRATEGY SEGMENTED PURCHASING STRATEGY AND VENDOR GROUPING
HIGH
BOTTLENECK ITEMS •LTC •ALIGN PROCESSES ENSURE SUPPLY NUISANCE ITEMS •MINIMISE ATTENTION •AUTOMATE AUTOMATE LOW
LOW
COMMODITIES DRIVE FOR SHARP BARGAIN
LEVERAGE
HIGH
ECONOMIC OPPORTUNITY VALUE
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ACCURATE DEMAND FORCASTING. DETAILED MARKET RESEARCH. DEVELOPMENT OF LONG TERM SUPPLY RELATIONSHIP. RISK ANALYSIS/ CONTIGENCY. LOGISTICS/INVENTORY/VENDOR CONTROL. LESS SUPPLIERS,HIGH BUYER STRENGTH. STRATEGIC ITEMS:
HIGH
BOTTLENECK ITEMS •ENSURE SUPPLY •LTC •ALIGN PROCESSES PROBLEM BOTTLENECK STRATEGIC NUISANCE ITEMS •MINIMISE ATTENTION •AUTOMATE ROUTINE
CRITICAL ITEMS •DEVELOP STRATEGIC PARTNERSHIP
COMMODITIES DRIVE FOR SHARP BARGAIN
LEVERAGE
HIGH
LOW LOW
ECONOMIC OPPORTUNITY Relative VALUE of Purchase
EN
PRODUCT
NN
EE
NE
SUPPLIER
? ? ?
?
JOINT COST REDUCTION INITIATIVE TARGET COSTING SUPPLIER INVOLVEMENT IN DESIGN AND PLANNING. PROCESS INNOVATION
FEATURES 1. STRONG AND RELIABLE SUPPLIER BASE 2. COLLABORATIVE RELATIONSHIP 3. MUTUAL TRUST 4. HIGH DEGREE OF INTERDEPENDENCE 5. LOCATIONAL ADVANTAGE Strategy Capability Enhancement
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LONG TERM AGREEMENTS TECHNICAL COLLABORATION MUTUAL BENEFIT PROFIT SHARING AND FINANCIAL TIE-UPS SUPPLIER AS ENTREPRENEURIAL TEAM MEMBER INVOLVEMENT OF SUPPLIER FROM DESIGN STAGE LEAD TIME REDUCTION
FEATURES: 1. QUALITY CONSIDERATION 2. COST CONSIDERATION 3. VOLUME CONSIDERATION 4. LOGISTICS 5. CARTEL
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SOURCING STRATEGY: MARKET SCANNING STRATEGY
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?
FEATURES: -NO HISTORY -RANDOM PRICING STRATEGIES: -INFORMATION COLLECTION --INFORMAL CHANNELS --CATALOGUES/JOURNALS -REQUIREMENT SPECIFICATION -TRIALS / MULTIPLE SOURCES -INVOLVE SUPPLIERS IN PRODUCT DEV.
SOURCING STRATEGY : CLASSICAL DEVELOPMENT
EN CAPABILITY ENHANCEMENT PRODUCT CLASSICAL DEVELOPMENT
COST REDUCTION
MARKET SCANNING
EE
SUPPLIER
NE
doc_230742337.pptx
It also includes strategies like joint cost reduction initiative, target costing, supplier involvement in design and planning and process innovation
? ? ?
?
? ? ? ? ? ?
CORE COMPETENCE SCARCITY OF SOURCES LIMITATIONS OF EXISTING SOURCES -TECH CAPABILITY AND TECHNOLOGY LEVEL -CAPACITY TO MEET DEMAND -CONSISTENCY OF QUALITY -COST COST REDUCTION -MAKE OR BUY OPTIONS -DISTANCE FROM EXISTING SOURCE GLOBAL SOURCING IMPERATIVES GOVT. REGULATIONS / INCENTIVES LOCAL ASPIRATIONS SPECIALISATION AND SOPHISTICATION FLEXIBILITY IN ADOPTING CHANGE PEOPLE MANAGEMENT
HIGH
LOW
ECONOMIC OPPORTUNITY RELATIVE VALUE
HIGH
? ?
?
? ? ? ? ?
PRODUCT STANDARDISATION ORDER VOLUME/OPTIMIZATION EFFICIENT PROCESSING INVENTORY OPTIMIZATION PAPER LESS ORDERING SYSTEMS CONTRACTING CREDIT CARDS PROCESS AUTOMATION MIN RESOURCE
NUISANCE / ROUTINE ITEMS
SOURCING STRATEGY SEGMENTED PURCHASING STRATEGY AND VENDOR GROUPING
HIGH
LOW LOW
NUISANCE ITEMS •MINIMISE ATTENTION •AUTOMATE AUTOMATE ECONOMIC OPPORTUNITY
HIGH
VALUE
FEATURE LESS SUPPLIERS LOW BUYER STRENGTH. VOLUME INSURANCE AT COST PREMIUM. INVENTORY HOLDING LTC VENDORS.RETENTION ALIGN PROCESSES CONTROL OVER VENDOTR ITEM SPECIFICATION GLOBAL SOURCING. BACK UP PLANS. BOTTLENECK ITEMS
SOURCING STRATEGY SEGMENTED PURCHASING STRATEGY AND VENDOR GROUPING
HIGH
BOTTLENECK ITEMS •LTC •ALIGN PROCESSES ENSURE SUPPLY
NUISANCE ITEMS •MINIMISE ATTENTION •AUTOMATE ROUTINE
LOW LOW
ECONOMIC OPPORTUNITY
HIGH
VALUE
MORE SUPPLIERS ,HIGH BUYER STRENGTH. EXPLOITATION OF FULL PURCHASE POWER. NEGOTIATION STRATEGIES VENDOR SELECTION . PRODUCT SUBSTITUTION TIN-BOTTLE-CARTON-POLY PACK
TARGET PRICING
ORDER VOLUME OPTIMIZATION LEVERAGE ITEMS
SOURCING STRATEGY SEGMENTED PURCHASING STRATEGY AND VENDOR GROUPING
HIGH
BOTTLENECK ITEMS •LTC •ALIGN PROCESSES ENSURE SUPPLY NUISANCE ITEMS •MINIMISE ATTENTION •AUTOMATE AUTOMATE LOW
LOW
COMMODITIES DRIVE FOR SHARP BARGAIN
LEVERAGE
HIGH
ECONOMIC OPPORTUNITY VALUE
? ?
?
? ? ?
ACCURATE DEMAND FORCASTING. DETAILED MARKET RESEARCH. DEVELOPMENT OF LONG TERM SUPPLY RELATIONSHIP. RISK ANALYSIS/ CONTIGENCY. LOGISTICS/INVENTORY/VENDOR CONTROL. LESS SUPPLIERS,HIGH BUYER STRENGTH. STRATEGIC ITEMS:
HIGH
BOTTLENECK ITEMS •ENSURE SUPPLY •LTC •ALIGN PROCESSES PROBLEM BOTTLENECK STRATEGIC NUISANCE ITEMS •MINIMISE ATTENTION •AUTOMATE ROUTINE
CRITICAL ITEMS •DEVELOP STRATEGIC PARTNERSHIP
COMMODITIES DRIVE FOR SHARP BARGAIN
LEVERAGE
HIGH
LOW LOW
ECONOMIC OPPORTUNITY Relative VALUE of Purchase
EN
PRODUCT
NN
EE
NE
SUPPLIER
? ? ?
?
JOINT COST REDUCTION INITIATIVE TARGET COSTING SUPPLIER INVOLVEMENT IN DESIGN AND PLANNING. PROCESS INNOVATION
FEATURES 1. STRONG AND RELIABLE SUPPLIER BASE 2. COLLABORATIVE RELATIONSHIP 3. MUTUAL TRUST 4. HIGH DEGREE OF INTERDEPENDENCE 5. LOCATIONAL ADVANTAGE Strategy Capability Enhancement
? ? ? ? ? ?
?
LONG TERM AGREEMENTS TECHNICAL COLLABORATION MUTUAL BENEFIT PROFIT SHARING AND FINANCIAL TIE-UPS SUPPLIER AS ENTREPRENEURIAL TEAM MEMBER INVOLVEMENT OF SUPPLIER FROM DESIGN STAGE LEAD TIME REDUCTION
FEATURES: 1. QUALITY CONSIDERATION 2. COST CONSIDERATION 3. VOLUME CONSIDERATION 4. LOGISTICS 5. CARTEL
? ?
SOURCING STRATEGY: MARKET SCANNING STRATEGY
?
?
FEATURES: -NO HISTORY -RANDOM PRICING STRATEGIES: -INFORMATION COLLECTION --INFORMAL CHANNELS --CATALOGUES/JOURNALS -REQUIREMENT SPECIFICATION -TRIALS / MULTIPLE SOURCES -INVOLVE SUPPLIERS IN PRODUCT DEV.
SOURCING STRATEGY : CLASSICAL DEVELOPMENT
EN CAPABILITY ENHANCEMENT PRODUCT CLASSICAL DEVELOPMENT
COST REDUCTION
MARKET SCANNING
EE
SUPPLIER
NE
doc_230742337.pptx