Welcome To ScmEdge

Strategic Sourcing

Strategic Sourcing is the collaborative and structured process of critically analyzing an organization’s spending and using this information to make business decisions about acquiring commodities and services

Utilizing our many years of “Strategic Sourcing” experience with many large organizations we will help you adopt and implement “Strategic Sourcing” and hence open up opportunities for “Year on Year” savings along with sustainable “Competitive advantage”. We will also provide you with an Effective Organization design along with Competency mapping for each position so as to achieve the desired goals.

SPEND ANALYSIS

Spend Management is all about how an organization approaches its non-revenue operations. It is not only about cost savings but it’s about getting “Maximum value out of the money the organization spends”.

For effective spend management we need to critically analyze Organizational spend data so as to provide us with the answers to following questions:

ENTERPRISE SPEND REVIEW

For our clients who have already adopted ERP system, our experts would run various reports on their ERP system and generate spend data. This data would then be analyzed using various tools so as to generate necessary information for development of sourcing strategies.

If our clients do not have ERP we will take data from the client’s legacy system Purchasing, Accounts Payable, General Ledger, and other financial information across multiple company and/or divisional lines, and combine that into a single data ”cube” for analysis. The hard-data result of this analysis is further refined by our project leaders, who apply our industry knowledge to the results to provide insightful reports.

We can also tie up with providers of technology solutions for spend management and install efficient and repeatable data cleansing and classification capabilities.

SUPPLIER EVALUATION AND SELECTION

Lack of standardized processes often leads to Sourcing managers using ad hoc criteria for vendor evaluation and selection. The selection criteria therefore becomes very subjective and dependent on individuals and their respective biases on the criteria for selection.

Our experts have designed comprehensive Supplier evaluation & selection criteria on the basis of benchmarked practices of Global organizations.

Supplier Performance Management

Having robust entry criteria for Suppliers is not enough. It has been our experience that many suppliers for a variety of reasons tend to default on various quality and delivery criteria over a period of time. Organizations which have adopted “Strategic Sourcing” lay as much importance to Strategic Supply Base performance as do world class organizations to their “Employee performance Management”.

We have designed elaborate “Supplier Performance Management” programs which are based on the “Continuous Improvement through Collaboration philosophy”. Elaborate metrics have been designed to measure supplier performance. Our philosophy of Supplier performance management is a combination of performance measurement as given above and performance enhancement support through the following programs:

• Technical assistance centers
•   Supplier support centers
• Loaned executives
•   Supplier seminars including top management meetings


The guiding principle of this program is to treat strategic suppliers as an extended enterprise of the client organization.

Supplier quality management has emerged as one of the leading business practices in the past few years. Global companies are making significant investments in systems and processes to improve supplier quality. With increased focus on supply chain efficiencies many companies have implemented lean inventory techniques. As a result, any issue in supplier quality can quickly result in stock outs.

Strategic vendors associated with various companies as part of an extended enterprise need to be working continuously upon upgrading their existing capabilities so that their products continue to meet standards set by the customers.

Supplier Audits are one of the best ways to ensure that supplier is following the processes and procedures that you agreed to during the selection processes. The supplier audit identifies non-conformances in manufacturing process, shipment process, engineering change process, invoicing process and quality process at the supplier. After the audit, the supplier and manufacturer jointly identify corrective actions which must be implemented by the supplier within an agreed-upon timeframe. A future audit ensures that these corrective actions have been successfully implemented.

After a through benchmarking exercise that will consider global best practices, we will prepare a audit checklist and audit program followed by a time monitored Corrective action plan which is reviewed periodically so as to ensure continuous improvement.

SUPPLIER AUDIT PROGRAM

The frequency of audit and review would depend on the strategic importance of the supplier to the organization. As a rule the program would ensure that it audits its entire supplier base at least once a year while maintaining a lean staff of auditors.