Case Study Supplier Sourcing

Based on the theory and findings from cases studies, it shows that Supply Positioning and Supplier Preferencing are powerful and dynamic market analysis tools in development a robust sourcing strategy. The study has revealed that these tools should be used in practice; as we could identify our position better and recognize the opportunities to leverage buying power that can bring different “game” structure, which will deliver significant profit improvements and cost savings. It also improves operational performance; provide better management and oversight of suppliers, while improving relationships with internal and external stakeholders. The outcomes of the analysis enable us to consider the degree of specific courses action in developing

No quadrant can be ignored, but rather the distinctive purchasing approach that each quadrant suggests begins to help identify our future sourcing strategy and how we can improve our overall position. The time should not spend on the insignificant activities; we shall focus on the quadrants such as Bottleneck and Critical, which could create the most value to us. By select a most appropriate possible sourcing strategy will create a major contribution to the competitiveness of the entire organisation.

From this case study, it is also recognized that these two tools can use for supplier relationship management by helping us to identify the level of effort on relationship management. To achieve effective supply management, the company needs to keep a balance between the relationships with its suppliers (Donaldson and O’Toole, 2007), to allocate the right portion of its resources to different relationships, and to develop strategic relationship with suppliers of strategic importance not only Today but also for the

We should continuously and proactively analyse the data, spent, market and to be updated regularly and the spend analysis process should be performed on a continual basis to support decisions on strategic sourcing and procurement management for the organization should there be any required changes. Besides, there must be risk and opportunity log especially for those proposed increase lower categories to the higher category as we discussed in cases studies above. Contract Holder shall own the risk and opportunity logs and the review shall be done as part of Business Performance Review that conducted in yearly basis. The team should also develop any risk analysis that may arise from the sourcing approach and the mitigation plan to address it. Porter’s Five Forces can assist us to better understand these dynamics in a more objective manner and make better strategic decisions as a result. It helps management to evaluate and assess their current market environment. It provides an excellent and intelligence gathering needed to formulate an organisation’s future