PROCUREMENT & SOURCING
In business, the term word sourcing refers to several procurement practices, aimed at finding, evaluating and engaging suppliers for acquiring goods and services: Outsourcing, the process of contracting a business function to someone else. Insourcing, a process of contracting a business function to someone else to be completed in- house. Global sourcing, a procurement strategy aimed at exploiting global efficiencies in production. Strategic sourcing, a component of supply chain management, for improving and re-evaluating purchasing activities. Vested outsourcing, a hybrid business model in which a company and service provider in an outsourcing or business relationship focus on shared values and goals to create an arrangement that is mutually beneficial to each. Sourcing Business Model, based on University of Tennessee (UT) research, a systems-based approach to structuring supplier relationships. There are seven sourcing business models that range from transactional to investment-based.
The seven models are:
The seven models are:
- Basic Provider
- Approved Provider
- Preferred Provider
- Performance-Based/Managed Services Model
- Vested Business Model
- Shared Services Model
- Equity Partnership Model Sourcing (personnel), the practice of recruiting talent using strategic search techniques
Co-sourcing, a type of auditing service. Low-cost country sourcing, a procurement strategy for acquiring materials from countries with lower labor and production costs, to cut operating expenses. Corporate sourcing, a supply chain, purchasing/procurement, and inventory function. Second-tier sourcing, a practice of rewarding suppliers for attempting to achieve minority- owned business spending goals of their customer. Net sourcing, a practice of utilizing an established group of businesses, individuals, or hardware & software applications to streamline or initiate procurement practices by tapping in to and working through a third-party provider. Inverted Sourcing, a price volatility reduction strategy usually conducted by procurement or supply-chain person by which the value of an organization's waste-stream is maximized by actively seeking out the highest price possible from a range of potential buyers exploiting price trends and other market factors. Remote Insourcing, a practice of contracting a third party vendor to complete a business function by creating collaborative units between in-house and third party staff.
Multi-sourcing, a strategy that treats a given function, such as IT, as a portfolio of activities, some of which should be outsourced and others of which should be performed by internal staff. Crowdsourcing, using an undefined, generally large group of people or community in the form of an open call to perform a task.
- − Sourcing & Procurement are amongst the most important enabling/financial functions in an organization
- − Vertical draws on domain expertise of senior procurement professionals amongst its members
- − Vet and empanel sourcing specialists to assist members
- − Provide advice to members in drawing up sourcing contracts and agreements
- − Periodically publish rates from leading suppliers for circulation amongst members
- − Maintain an extensive database of renowned suppliers to help members with their sourcing needs