Services »Domains »Sourcing & Procurement
Sourcing & Procurement
A typical sourcing and procurement effort involves understanding the requirements/specifications of the goods/services to be sourced, inviting bids from suppliers, evaluating them, selecting a set of suppliers and taking inputs (on the lead time and suitability of the supplied items) from the internal customer about the performance of the supplier. Strategic sourcing is when this becomes a cyclic process wherein the feedback (supplier scorecard) on the services/goods provided by the internal customer is analysed (by a spend assessment exercise and supplier benchmarking) and used in future sourcing efforts. This cyclic nature of the process is the most important part and helps to further improve the whole procurement process.
A strategic sourcing process provides the opportunity to realize sustained long term cost savings. Effective implementation can help achieve cost savings of as much as 15% of the addressable sourcing spend. With increasing global competition, companies need to improve their bottom line to maintain/increase their margins. This makes it imperative for a firm to look for low cost destinations like China and India. The cost effect can either be in terms of availability of low-cost labour, raw materials or finished goods (for retailers) or a combination of any of the three. Global sourcing, in-spite of its many benefits, brings in a lot of complexities to the supply chain most important of them being international logistic management. Some of the issues that need to be addressed are:
Sound technology support
Hidden costs identification to make it successful in the long run
Setting up international sourcing offices/warehouse etc.
Reduction of supply chain visibility
Lack of transparency
Takes time to set up the supply process at a location far from the home operations
Long term view of the country from which sourcing is done (to ensure the savings are a continued process and not one-tim
Last Updated On:12/3/2008 2:35:28 PM
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Services »Capabilities »IT Planning & Business Technology Alignment
IT Advisory
The key challenge for an IT Organization is to improve benefits of IT while reducing the cost incurred on IT, seemingly contradictory objectives. In addition, there are multiple questions being raised around changing technology dynamics such as Outsourcing, SaaS, Service-Oriented Architecture, Security etc. Hence there is no easy answer to IT Optimization and it is important to bring in the right advisory expertise.
Our capabilities in providing IT Advisory span across:
IT Strategy & Planning
IT Execution Support
Technology Solutions for Supply Chain
IT Strategy Roadmap:
Develop a 3-5 year roadmap for what investments should be made to achieve objectives defined including defining a roadmap for Service Orientation (SOA)
Program Management:
Provide program management support to help run large IT transformation programs including vendor management
Last Updated On:10/22/2008 12:01:24 PM
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Industries »Electronics, High Tech & Telecommunications
Electronics, High Tech & Telecommunications
This is a highly innovation-centric industry where the product lifecycles tend to be short. The focus of this industry is on products which deliver better performance, high speed communication and energy efficient products. Outsourcing of manufacturing to contract manufacturers or Electronic Manufacturing Services (EMS) has become an important part of the supply chain in the last two decades. Energy efficiency has become one of the important aspects due to the dangers of global warming. Also more and more companies globally are moving to a supply chain model which produces minimum waste and pollution.
Industry Characteristics:
Complex multi-tier supply chain network, consisting of raw material suppliers, manufacturers, co-packers, distribution centers, retailers and consumers.
Short product life cycles· Global suppliers and distribution
Assembly intensive manufacturing
Customer satisfaction is the main objective (OTD and fill rates)
Rapidly changing demand signals
Issues/Pain Points
Components
Suppliers catering to wide range of products
Stiff competition amongst suppliers
Increased risk of supply due to international sourcing
Product obsolescence
Last Updated On:10/23/2008 12:11:56 PM
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Our Answers to questions from participants of the webinar on
“Inventory Level Optimization and Better Supply Chain Visibility through Superior S&OP Practices" on December 17th 2008, 3 P.M. Indian Standard Time (IST)
How does it impact capital expenditure?
In the S&OP process, plans ranging from 6 months to 18 months are viewed critically. Their resource requirements is checked through the Bill of Resources. Eventually we have a Loading Chart for each time period comparing the Resources Available and Resource required.
Issues relating to Capital Investments become eminent through these Loading Charts and decisions on these critical issues are hence addressed well in advance.
What is the size of insustry which can afford running a good S&OP program?
Typically any organization with sales in excess of Rs 150 crores or so would require a good S&OP program to foster growth and reduce cost of goods sold.
What what type industries generally will have this kind of program?
S&OP is irrespective of industry type. Any industry where there is a purchase-to-pay and an order-to-cash cycle would warrant an S&OP program
Is the promotional products which come along with the main product?
Promotional products could be the main product itself like in the case of trade offers where a product is given free on purchase of a certain number of the product.
It could be gift items or sample items manufactured or purchased separately. Either way planning for these should be a part of the forecasting and S&OP process
Stock avaliability, is it the finished product you are referring which customer can see?
It could be Finished Product or stocks at an intermittent stage in a Assemble to Order environment. More important than the customer actually seeing the product, it is the ability that Customer Service gets of promising the product to the customer by a particular date or the Available to Promise
Sp
Last Updated On:12/29/2008 6:35:01 PM
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Last Updated On:7/31/2010 11:49:50 AM
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