Sourcing is a balancing act. It is the process of requesting quotes for new products, obtaining vendor information and uploading into your procurement software, determining the lead time, pricing, minimum order quantities, and so on. Generally, this is done one time for each supplier, with the exception of updating pricing information. However, because it’s important to have a backup supplier or two in case one is not able to meet your needs for any reason, sourcing departments are always busy.
The procurement function includes preparing and processing a demand, all the way through receiving in stock rooms or wholesale warehouses and paying for the goods and services. It involves several steps from planning the purchase and setting quality standards to supplier research and selection, value analysis, price negotiation and financing, and so on.
Proper SCM covers the overall supply chain process and will create an efficient system that lowers costs, boosts profits, and promotes collaboration between all parts of the supply chain. This includes identifying company needs, financing purchases, strategic sourcing, negotiating price, quality control, inventory control, managing of transportation companies during both receiving and sending, etc. This follows right through until the product is in the hands of a customer.
Using a freight forwarder to import and export goods can make the whole process much less stressful. Extremely knowledgeable in the elements of supply chain, freight forwarders can assist on all levels, from the packing and warehouse stages to the customs procedure, taking some of the pressure off you.
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