A new approach to sourcing
Countries like China have become the preferred destination for low-cost sourcing. But when crossing the ocean, the key to effective Supplier Relationship Management is the "relationship," not the software. Here's an example that drives home this fact:
A VP of Supply Chain for a firm headquartered in North America was sourcing all of their product from China. He spent an entire weekend developing a detailed schedule of the exact SKUs and quantities he needed and emailed them to China.
When the containers arrived, the VP was shocked that the shipment was wrong. The VP called China, only to be told that his contact there rarely reads emails and never saw the VP's carefully prepared schedule.
If this story seems familiar, consider these other real-life examples:
One sourcing manager had incentives that were based on the quantity of sourcing the company did from China instead of the quality, so he didn't pay very much attention to the product's quality or customer service.
A company had multiple sources for a component in China for their product, which was more expensive but reassures them that they had fallback stock. A consulting firm found that the multiple sources for the component were all owned by the same parent company, and the company was unaware.
Success today requires that an organization be a global firm that sources well, communicates well, has strong supplier relationships and focuses their attention on building a strong global supply chain.
Tompkins Associates can offer your company a new way of thinking about sourcing that's not about how much you source, but rather how well you source.
Tompkins Associates advocates a unique approach to SRM that focuses on the 'relationship' in low-cost sourcing:
- Phase I -- Assessment: Develop Supplier Alignment Profile. Audit all touch points and prioritize opportunities by greatest value and ease of implementation.
- Phase II -- Team Based Continuous Improvement of Key SRM Priorities: Create Buyer/Supplier teams to analyze specific prioritized touch point opportunities and to implement for value-based results.
- Phase III -- SRM Excellence: Institutionalize the SRM process between Buyer/Supplier. Work with Buyer to assure SRM becomes a part of their procurement fiber.
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