This document discusses supplier sourcing and outlines the key steps in the sourcing process. It defines supplier sourcing as selecting suppliers to provide goods and services needed to run a business. The sourcing process involves gathering details on items to source, identifying potential suppliers, submitting requests for quotations, comparing suppliers based on criteria like cost, quality, and delivery times, and ultimately selecting the best primary and secondary suppliers. The goal is to source high quality products at competitive prices while maintaining control of inventory levels and costs.
When dealing with a supplier, remember that your goal isn’t to get the cheapest product. Your target is to have a well-priced offering that does not compromise on quality. By learning the art of negotiation, you get three benefits: You cut down on the cost of goods. Money saved is money earned.
As a result of lower expenditure, your profit margins rise.
It helps you control your cash flow.
Supplier Sourcing is finding the suppliers for resources of your selling. We need to contact five suppliers, wrote a request letter for inquiry or to their messenger about the cost using few standard term for a healthy future deal
When dealing with a supplier, remember that your goal isn’t to get the cheapest product. Your target is to have a well-priced offering that does not compromise on quality. By learning the art of negotiation, you get three benefits: You cut down on the cost of goods. Money saved is money earned.
As a result of lower expenditure, your profit margins rise.
It helps you control your cash flow.
Supplier Sourcing is finding the suppliers for resources of your selling. We need to contact five suppliers, wrote a request letter for inquiry or to their messenger about the cost using few standard term for a healthy future deal
9. Sourcing Process
.
Preparation of
item details
Identify Supplier
Self-introduction
Showing interest
in their product
Submission of
RFQ
Inquiries for
additional
details such as
sample fees and
production time
Thank them for
the
information
10. Choosing the Best Supplier
and Data Analysis
.
Primary
Supplier
Secondary
Supplier 1000 UNITS
Compare Evaluate Analyze
EXW EXW
FOB FOB
DDP
Production Time Production Time
Profit Margin >30% Profit Margin <30%
