Essay On Sourcing Strategy-The Brains Behind The Game

Type of paper: Essay

Topic: Strategy, Technology, Supply Chain, Company, Tool, Market, Supply, Information

Pages: 3

Words: 825

Published: 2020/11/07

Summary

In supply management, supply experts are always under stress to look for ways to increase savings and reduce costs. Managers normally demand more from suppliers apart from attaining the basic cost reductions and savings. In the process, supply experts have turned to using technology and internet tools to develop a strategic sourcing process. However, emphasis and significance is on the strategic sourcing process rather than the use of technological tools. Application of strategic sourcing requires several processes that companies normally apply. The steps in processes could be as between five and fifteen. It normally depends on the organization’s preference.
Strategic sourcing aims to achieve an understanding or the market characteristics, the inner abilities of the company, and the external environment of competitors. Secondly, strategic sourcing aims to create a strategic approach to the market. Thirdly, strategic sourcing is necessary for the management part of the business, which is normally complex because of the constant rapid pace of changes in the business environment.
For companies, incorporation of technology in the sourcing strategy process is relevant. Normally, sourcing strategy occurs prior to seeking suppliers and using technology. However, for companies that are seeking the first use of a sourcing strategy, incorporation of technology is easier than for companies that already have a sourcing strategy. There is a need for consultant services, which can be costly to ensure proper incorporation of technology in the process. Each company will require modification of technology based on its usage and industry environment.
After internal analysis of the company’s capabilities such as the technology discussed above, it becomes important to conduct an external market analysis to establish buyer behavior. In such a scenario, the Internet becomes a valuable tool for such information. However, there is a need for in the process since the internet will provide large volumes of information.
Using market service subscriptions is essential in going through the large source of information provided by the Internet. However, the idea is not making subscriptions but rather analyzing what is done with the information obtain from them and using them to devise strategies. Thus, technology is used as a forecasting tool based on market subscriptions services.
Environmental scans are critical. However, it involves more than just using tools. A personal interaction with suppliers is equally important in understanding the suppliers. Despite the task of monitoring suppliers being a difficult one, companies can be able to obtain information about the continuous changes that occur in the different supplier businesses affecting their industry.
An understating of the supplier market dynamics requires the use of critical thinking skills. The technological e-tools cannot assist in the understanding of the complex interactions in the supplier market dynamics. For instance, an approach used, in this case, is the Cox’s approach. The approach mainly seeks to establish the position of power in the supply chain then try to move it and use it in an existing situation. Consequently, once the power has been established, it becomes important to analyze the balance of power between buyers and suppliers (Smock et al. 6). A tool used in this process is the Oraculix Power Positioning Tool. Functioning of this tool is based on supply flow, nature of demand and supply flow, power characteristics of buyer and seller and the significance of buyer to the seller. The advantage of the tool is that it provides both known and unknown information and data. After completing the analysis, focus shifts to the buyer's sourcing and leverage options and the sellers marketing and strategy options (Smock et al. 6). It is critical to note that the usage of the tool will heavily depend on knowledge of ideas that are the basis o f the design of the tool.
Sourcing strategy encompasses use of critical thinking skills prior to entering any market. Further, expertise in this field it is a necessity in developing strategies. Additional tools will boost the formulation of strategies. As such, companies with the ability to use the tools in conjunction with the knowledge background in their sourcing strategies have a competitive advantage over other players.
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Work Cited

Smock, Douglas A., and Robert A. Rudzki. "Sourcing Strategy The Brains Behind the Game." On-demand Supply Management World Class Strategies, Practices, and Technology. Ft. Lauderdale, FL: J. Ross Pub., 2007. Print.

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WePapers. (2020, November, 07) Essay On Sourcing Strategy-The Brains Behind The Game. Retrieved April 20, 2021, from https://www.wepapers.com/samples/essay-on-sourcing-strategy-the-brains-behind-the-game/
"Essay On Sourcing Strategy-The Brains Behind The Game." WePapers, 07 Nov. 2020, https://www.wepapers.com/samples/essay-on-sourcing-strategy-the-brains-behind-the-game/. Accessed 20 April 2021.
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"Essay On Sourcing Strategy-The Brains Behind The Game." WePapers, Nov 07, 2020. Accessed April 20, 2021. https://www.wepapers.com/samples/essay-on-sourcing-strategy-the-brains-behind-the-game/
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"Essay On Sourcing Strategy-The Brains Behind The Game," Free Essay Examples - WePapers.com, 07-Nov-2020. [Online]. Available: https://www.wepapers.com/samples/essay-on-sourcing-strategy-the-brains-behind-the-game/. [Accessed: 20-Apr-2021].
Essay On Sourcing Strategy-The Brains Behind The Game. Free Essay Examples - WePapers.com. https://www.wepapers.com/samples/essay-on-sourcing-strategy-the-brains-behind-the-game/. Published Nov 07, 2020. Accessed April 20, 2021.
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