Strategic Sourcing
Efficiency in operations
When we start thinking about sourcing as a process rather than an event, we shift our focus to more modern ways of operational procurement.
Nevertheless, the actions of securing contracts to fulfill freight demand are and will remain core to the lifecycle.
Strategic sourcing
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Prepare tender event
When preparing for a tender event, procurement professionals must communicate with the supplier base on the freight demands of the organization in order to secure the best rates possible.
Reliable data, carrier selection, and communication are the most important factors guaranteeing smooth tender execution.
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Identify suppliers
Procurement teams are looking for reliable and strategic suppliers with whom they can fulfill their procurement tasks.
Some suppliers are more advanced than others when it comes to modern procurement approaches and it is important to look at the full picture, not only cost when considering relationships.
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Run sourcing events
Once preparation and suppliers have been identified, the bid goes out to market for response.
In order to secure the best rates possible, target rates are typically stated and the bidding goes over several rounds, concluding with final negotiations.
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Evaluate responses
Procurement professionals need to keep an overview of the tender, all incoming bids and the development of the market.
Due to the complexity of many of your networks, concentrating on the most important lanes where the budget impact is the most significant remains common practice.
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Select supplier
Following multiple tender rounds, a supplier is selected.
Final negotiations take in to account the market situation, your own buying strategy and the supplier strategy for moving your goods at time and cost.
