1. Strategic sourcing

2. Business
planning
Spending
analysis
Supply
analysis
Sourcing
strategy
Supplier
selection
Agenda

3. Business
planning
Business
planning
Spending
analysis
Supply
analysis
Sourcing
strategy
Supplier
selection

4. Business
planning
Business
goal
Cost
down
Quality
On time
delivery
Today
1/1 1/21 2/10 3/1 3/21 4/10 4/30 5/20
Strategic
sourcing…
Drawing review
Tooling making
Sample test
PPAP
Start of
production
Finished Unfinished
Strategic goal Planning with schedule

5. Spending
analysis
Business
planning
Spending
analysis
Supply
analysis
Sourcing
strategy
Supplier
selection

6. Spending
analysis
Casting
31%
Machning
16%
Hard ware
9%
Supplier A
28%
Supplier B
13%
Plastics
42%
1. Categorization
2. Year spending analysis
3. Total spend by category
4. Total spend by supplier
5. By country
6. By product life cycle
7. By technic requirement
8. By quality requirement
9. By size , material
10. By 80/20……

7. Spending
analysis
0
20
40
60
80
100
120
As is Material saving Lobor/equipment
cost saving
SGA saving Transporation
saving
To be
1. Standard cost structure
analysis
2. Total cost of ownership
3. Material cost is the
majority
4. Tooling cost
5. Labor / equipment cost
6. Return of investment

8. Supply
analysis
Business
planning
Spending
analysis
Supply
analysis
Sourcing
strategy
Supplier
selection

9. Supply
analysis
0
10
20
30
40
50
60
70
80
90
100
1 2 3 4 5 6 7 8 9 10
Supplier assessment scoring
0
1
2
3
4
5
Quality
Cost
Delivery
Service
Techniqu
e
Asset
After
sales
Systematic supplier assessment for right potential suppliers

10. Sourcing
strategy
Business
planning
Spending
analysis
Supply
analysis
Sourcing
strategy
Supplier
selection

11. Sourcing
strategy
competiti
ve rivalry
Threat of
new
entrants
Bargainin
g power
of buyers
Threat of
substitute
products
Bargainin
g power
of
suppliers
Metal
Plastics
0
2
4
6
8
10
0 2 4 6 8 10
Supplypower
Demand power
Porter five forces Purchase chessboard

12. Supplier
selection
Business
planning
Spending
analysis
Supply
analysis
Sourcing
strategy
Supplier
selection

13. Supplier
selection
 Material
group
(P/N,QTY,
spec…)
 Potential
supplier
list
RFQ-
request
for
quotati
on
Quotati
on
review
Negotia
tion
Supplier score
Supplier
1
Supplier
2
Supplier
3
Price 35% 4 1 2
Quality 35% 4 2 4
Delivery date 10% 5 5 5
Payment term 5% 3 3 3
Product line
coverage
5% 5 2 3
Service level 5% 2 5 1
Distance 5% 5 5 3
Total 100% 4 3 3
RFQ bidding process Supplier scoring matrix

14. Thank You ！
Nick Du / 杜刚