Strategic Sourcing Report:
Implementing Strategic Sourcing Plans With a Take-Away Outline
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Some of the procedures that you will learn are:
1. How at the beginning of each year your Chief Procurement Officer or Head of Procurement will define the key spend categories that are to be covered by a Strategic sourcing plan
2. Further the Team Leader will select a Strategic Sourcing Team composed of those individuals at Company involved with the spend category or any others needed to support the development or implementation of the plan.
3. Then, the Team led by the Team Leader, should meet and discuss all aspects of the procurement activity related to the selected category. This should include, the Company business strategies related to the commodity, supplier performance and relations, supplier selection, quality and delivery issues, cycle time reduction, inventory, global supply market conditions, sourcing methods of competitors, potential for total cost improvements, contractual arrangements, ordering and payment process, substitutions and commodity innovations, and the forecasted requirements for the spend category. The team then develops the necessary data to complete the Strategic Sourcing Plan including the action plan.
4. Once the SSP is approved it should be presented by the Strategic Sourcing Plan Team to Executive Management for concurrence.
5. The Team Leader shall administer the plan with team members providing input per the SSP action plan.
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