Professional Documents
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Group Members Thisaru Kaumadi Sujith Perera Rusiru Perera H.N.D Fernando Yasith Weerasinghe
Presentation Outline
Introduction to Sourcing Sourcing Cycle/Process
Introduction to Sourcing
Sourcing refers to a number of procurement practices, aimed at finding, evaluating and engaging suppliers of goods and services
There are two major forms of purchasing 1. Tactical Purchasing 2. Strategic Sourcing
Global Sourcing is a term used to describe practice of sourcing from the global market for goods and services across geopolitical boundaries.
Critical Item (STRUKTOL 40 MS) STRUKTOL 40 MS improves the homogeneity of elastomers of different polarity and viscosity. STRUKTOL 40 MS is added to the polymers within the mixing cycle.
Sourcing Cycle/Process
Loadstar (Pvt) Ltd has developed a Global Sourcing Process (GSP). This ensures a selection of premium suppliers and to secure the purchasing segment strategy implementation for critical items.
Segment Strategy
Data Collection
Initial Negotiation
Quotes Evaluations
RFQ
Schill and Seilacher Group is a reliable partner for Chemicals. Superior Quality On time delivery. Competencies in manufacturing process. Comparison
Supplier Schill & Seilacher Group China Rubber Industries Supply Value CIF 1500/ per ton CIF 1800/ per ton Lead Time 2 weeks 3 weeks
To use the existing preferred supplier lists available in order to decrease the number of used suppliers and utilize already existing agreements
To make sure that your company is legally protected
Principles Health and Safety Fair business practices Environment protection Human rights Local community and development
The criteria used consist of; Right Time and Right Quantity - On time delivery in full- how well the delivery dates are met with the required full quantity Right Quality - First pass yield - the rate of passing the sample test for each of the lot imported-, Right Price - Last purchased price- the rate of hike are considered Right Time - Full filling Purchase order requirements- sending completed shipping documents and quality certificates in time Number of other discrepancies and complains about the product.
These components are given appropriate weights as per the decision made by the sourcing team .
two-way
information,
Most companies focus on what suppliers can do for them rather than on what they can do with the supplier to lower costs.
A true partnership leverages the total production cost to both parties' advantage.
At Loadstar, the volume ordered by loadstar is very minimal; it has very little bargaining power.
But Loadstar always tries to keep a very good relationship with these suppliers and their Sri Lankan agents.
Information sharing practice- the suppliers also tend to be more cordial and close in their partnership with Loadstar.
Loadstar always seeks advice and assistance in developing its processes; whenever there is a process improvement they involve the supplier agents.
Analyze Risks
Treat Risks
Steps in a strategic sourcing process Assessment of a company's current spends (what is bought where?) Assessment of the supply market (who offers what?) Total cost analyses (how much does it cost to provide those goods or services?) Identification of suitable suppliers Development of a sourcing strategy (where to buy what considering demand and supply situation, while minimizing risk and costs) Negotiation with suppliers (products, service levels, prices, geographical coverage, etc.) Implementation of new supply structure Track results and restart assessment (continuous cycle)