1What are the challenges of strategic sourcing?
The top four problems in the strategic sourcing process1. Demand forecasting that is accurate. Overstocking ties up capital and takes up space, whereas understocking has the potential to lose clients.
2. Margin management.
3. Managing vendors.
4. Taking control of the purchasing process.
2What is the main focus of strategic sourcing?
Strategic sourcing entails creating a proactive, holistic, and ongoing examination and re-evaluation of an organization's sourcing efforts. Strategic sourcing strives to reduce Total Cost of Ownership (TCO) while reducing supply chain risk.
3What does strategic sourcing include?
Data collection, spend analysis, market research, negotiation, and contracting are all part of the strategic sourcing process. It does not include the purchase and payment of goods and services.
4What is procurement life cycle?
The procurement cycle (or procurement process) is the sequence of events that occur during the procurement process.