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SCE Assignment CO2

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34 views3 pages

SCE Assignment CO2

Uploaded by

atul953020
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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SCE Assignment CO2

Que.1 Describe the Sourcing Process.


Ans.2 Here are the 7 steps that should be followed for an efficient and effective sourcing
process.
Step1 – Define the spend category
Before you plan anything else, make sure to clearly define the sourcing category or
commodity. What size and precise type does the enterprise need? Who are the end customers
to these goods or services, where are they located, what kind of logistics are being deployed,
and who else is included in the supply chain? An efficient sourcing process begins with
understanding the category and commodities that an enterprise needs in order to achieve its
goals and spend visibility is the key to gain that understanding. Information should be stored,
categorized, analysed, and finally validated.
Step2 – Supply Market Research
Research the price aspects that make up for the product or service that your enterprise needs.
Analyse the essential raw material costs and other price aspects that are involved such as
labour and logistics and utilize these factors later to evaluate proposed bids from vendors. Go
the extra mile to research the marketplace to find potential vendors locally and globally
along with the risk and opportunity factors.
Step3 – Create a sourcing strategy
Choosing how and where to purchase the material while reducing risk and price is a huge
challenge for procurement managers. If you already have an existing supplier, then re-
negotiation could also be an option. The sourcing strategy you create should align with the
enterprise’s requirements and goals along with capabilities and resources. It is recommended
to have a cross-functional sourcing team that involves stakeholders, subject matter experts,
and end customers.
Step4 – Choose potential vendors
One of the common ways to find a potential supplier is by using RFPs (Request for
Proposal) process for soliciting bids including, goods or service-related specifications, cost
breakdown and analysis.

 Find existing vendor base


 Research additional vendors
 Create vendor qualification criterion

Step5 – Selecting a vendor and negotiating terms

The process of choosing a potential vendor involves talking to different vendors and
conducting multiple rounds of meetings with short-listed vendors for negotiations. The
selection of the vendor should be according to the pre-agreed criterion. The contract drafted
should be read and signed by both parties.

Step6 – Execute & integrate


Make sure that the vendor, internal end-customers, and everyone who is affected by the
process is involved in the design and execution of the solution. Smooth execution is only
possible with a transparent process and extensive communication across the departments.
Step7 – Benchmark and track results
This step is essential to shape the success of any strategic sourcing project. Cutting-edge
technological solutions applied to the tracking of cost savings can help in finding when and
where the vendor is adding value. Automated reporting offers faster and precise feedback
and optimizes vendor relation management (VDM).

Que.2 Explain the competitive model of supply chain management.

Ans.2 supply chain management: - Supply chain management involves combining all of the
elements needed to create, produce and deliver products and services to customers. For a cup
of coffee this would include growing the beans, transporting them to the coffee roaster,
roasting them, warehousing, transport to the coffee shop, storing them, brewing them,
maintaining the shop, serving the customer, managing the staff and disposing of the litter, as
well as many other elements. For a laptop computer it includes mining ores that create the
metals used, production of parts, transport of parts to assembly, assembling the parts, quality
assurance and control, an online ordering system for customers, a delivery network for
distribution to customers and a technical support operation, as well as many other elements.

Competitive model

The competitive approach is primarily intended to reduce the price paid by the purchasing
organisation; The competitive approach aims to make vendors compete with each other to
offer the lowest price to the purchaser. The purchaser seeks to attract interest in supply from
a large number of vendors and spreads their orders amongst many of them so that suppliers
will compete with each other, by offering lower prices, to get more of the business. This
approach is quite commonly used but is criticized because it often leads to lower quality of
the purchased product or service. In the competitive approach, activity is focused on
encouraging competition throughout the purchasing process and continuously after initial
purchase decisions have been made. Purchasing employees regularly review purchase prices.
In the competitive approach, purchasing and other staff work closely with suppliers in
continuous improvement activity, often involving engineers and others with process and
technical knowledge that will support innovation.

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