What is the key focus of strategic sourcing?

Strategic sourcing focuses on adding value to the value chain by leveraging globalization, technological innovation, and understanding supplier strengths and weaknesses.

How are companies shifting their approach to procurement?

Companies are shifting from traditional cost-cutting methods to developing healthy relationships and leveraging supplier innovation and infrastructure for faster growth and flexibility in their value chains.

Why did companies move away from vertical integration?

Companies realized that vertical integration was no longer effective and started adopting the chiritsu model of networked suppliers to improve market share and efficiency.

What is the kyoryoku model?

The kyoryoku model is a Japanese business network where companies have ownership shares in each other, working together while maintaining operational independence.

What are the key steps in strategic sourcing?

The key steps in strategic sourcing include conducting internal need analysis, assessing suppliers, and building supply relationships.

Strategic Sourcing & Case Study: Optimizing Procurement Process

Name: Strategic Sourcing & Case Study: Optimizing Procurement Process
Uploaded: 2023-09-01 08:32:18
Description: Strategic sourcing is a valuable method for organizations to optimize their procurement process and benefit from online procurement.

This article is a summary of a YouTube video "Lec 13 - Strategic Sourcing & Case Study" by IIT Roorkee July 2018

TLDR Strategic sourcing is a valuable method for organizations to optimize their procurement process and benefit from online procurement.

Timestamped Summary

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00:00
Strategic sourcing has evolved to focus on adding value to the value chain by leveraging globalization, innovation, and understanding supplier strengths and weaknesses, shifting from cost-cutting to developing healthy relationships and leveraging supplier innovation and infrastructure for growth and flexibility.
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05:29
Companies in the kyoryoku model and in India collaborate and invest in each other to minimize risk and ensure mutual success, realizing the value of sharing information for continual improvement in quality and cost, and should consolidate component purchases with few suppliers to achieve competitive cost, high quality, and efficient delivery.
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09:33
Conducting internal need analysis, assessing suppliers, and building supply relationships are key steps in strategic sourcing, allowing companies to gain advantages and mitigate risks in the market.
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13:11
A public university aims to reduce costs by streamlining functions under new leadership, facing challenges with non-citizen students attending classes, while the management information systems department leads the implementation of a new ERP system.
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17:23
The purchasing team for a university needs to pitch their case to the Chancellor for an ongoing relationship with a software provider, considering the impact of the political environment, tariffs, and tax rates on the purchasing process.
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21:06
The decision-making unit for strategic sourcing at the university includes various stakeholders, such as the Vice Chancellor, committee members, IT team, and past purchase decisions, with economic, political, technological, and legal influences being important factors to consider.
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24:24
Follow the government's e-procurement process to ensure compliance and efficiency in sourcing, evaluating potential suppliers based on various factors and utilizing e-procurement for strategic sourcing.
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26:24
Strategic sourcing is an important and useful method for organizations to streamline their procurement process and benefit from online procurement.

Q&A

What is the key focus of strategic sourcing?

— Strategic sourcing focuses on adding value to the value chain by leveraging globalization, technological innovation, and understanding supplier strengths and weaknesses.
How are companies shifting their approach to procurement?

— Companies are shifting from traditional cost-cutting methods to developing healthy relationships and leveraging supplier innovation and infrastructure for faster growth and flexibility in their value chains.
Why did companies move away from vertical integration?

— Companies realized that vertical integration was no longer effective and started adopting the chiritsu model of networked suppliers to improve market share and efficiency.
What is the kyoryoku model?

— The kyoryoku model is a Japanese business network where companies have ownership shares in each other, working together while maintaining operational independence.
What are the key steps in strategic sourcing?

— The key steps in strategic sourcing include conducting internal need analysis, assessing suppliers, and building supply relationships.