33:799:301 Lecture Notes - Lecture 6: Strategic Sourcing, Focus 3, Supplier Relationship Management

• School: Rutgers University
• Department: Supply Chain Management
• Course: 33:799:301
• Professor: A Taitt

Document Summary

Sourcing- the process of identifying a company that provides a needed good or service. Strategic sourcing- a comprehensive approach for locating and sourcing key suppliers, so that an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace. Strategic sourcing requires analysis of what an organization buys, from whom at what price and at what volume. Emphasis is placed on the entire life cycle of a product, not just its initial purchase price. Share best practices across the organization: develop and implement multi-year contracts with standardized terms and conditions across the organization, leverage the entire organizations spend. Analysis and ability to make adjustments based on price evaluation of supplier performance and the overall needs of the organization. Insourcing- producing goods or services using a company"s own internal resources. Outsourcing- the traditional definition involves purchasing an item or service externally which had been produced using a company"s own internal resources previously.