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Strategic Sourcing: Critical Tools & Frameworks
Strategic Sourcing
Critical Tools & Frameworks
- Supplier Pre-Qualification & RFx
Use detailed Requests for Information (RFI), Proposal (RFP), and Quotation (RFQ) to screen and evaluate suppliers. - Supplier Scorecards
Quantify performance using KPIs (Key Performance Indicators) like On-Time Delivery (OTD), Perfect Order Fulfillment, and Defect Rates. - Spend Analysis
Use data to understand what you are buying, from whom, and at what price to identify leverage and savings opportunities. - Negotiation Models
Move beyond price haggling to interest-based negotiation, creating win-win outcomes (e.g., better payment terms for a lower price). - Contract Management
Ensure all agreements are clear, stored, and actively managed to uphold terms and capture value. - SRM (Supplier Relationship Management)
A formal program to categorize suppliers and manage key strategic relationships for collaboration and continuous improvement.
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