Supplier development and procurement strategies are a significant part of a lean supply chain. Embedded in lean is the concept of supplier partnerships based on long-term commitments to quality and cost reduction. Complimentary to this is the six sigma theory which suggests that the number of suppliers we have should be minimized in order to reduce complexity and the associated costs. With your guidance, we will execute comprehensive strategic sourcing initiatives including:
- Strategic Sourcing Vision Development
- Current Condition Supplier Analysis
- Purchasing Policy Development
- Supplier Collaboration Development
- Total Cost Management Development
- Target Pricing Development
- Contract Management
- Order Management
- Supplier Performance Assurance
- Procurement Measurement
- Continuous Improvement Development
The supply chain executive will, with any luck, have some participation in the selection process of suppliers for the manufacturing process. At the very least, the logistics manager should be involved with analysis when looking at sourcing strategies, especially reviewing supplier location relative to transportation and inventory carrying cost. This is particularly important as many organizations are moving their domestic supply base offshore to China, Eastern Europe, India, and South Africa with far-reaching implications. Contact us when you are ready to work with your suppliers as strategic partners.
