sourcing strategy for xxxxxxxxxxxxxxxx x prepared by: x
TRANSCRIPT
SOURCING STRATEGY
FOR
xxxxxxxxxxxxxxxx
x
Prepared by:
x
Confide
Phase 1: Internal Assessment
CATEGORY PRIORITY
CategoryPareto (A, B or
C)Future spend
Criticality (H,M,L)
Priority (H,M,L)
SPEND BREAKDOWNEnter tables for Spend Breakdown below:
Category M Grp Description
# of Supplier
s YTD $'s cum
Confide
Phase 1: Internal Assessment
CATEGORY PROFILE
Requirements
• xxxxxxxx
Spend Profile
• # of suppliers xxxxx
• xxxxxxxx
Current Buying Practices
• x
Buying Constraints (if any)
• x
• x
Confide
Phase 1: Internal Assessment
TOTAL COST OF OWNERSHIP
If TCO costs are known, enter table similar to table below:
TCO COST Up-front $ Year 1 Year 2 Year 3
Purchase Price:
Services being purchased
Acquisition:
sourcing
Usage Costs:
none
End of Life Costs:
none
Total
PRESENT VALUE
Confide
Phase 1: Internal Assessment
SOURCING GOALS AND CONSTRAINTS WORKSHEETVALUE DRIVERS:
Product Design Procurement
quality Market test
service Other sources
cost cost
SOURCING GOALS:
LIST OF GOALS
Quality of end result
Vendor flexibility
Testing of the market
Transitional guidance for design
Guidance on market trends
CONSTRAINTS (IF ANY):
LIST OF CONSTRAINTS
Client’s lack of motivation to change
Confide
Phase 2: Supply Market Analysis
MARKET PROFILE
Market Size
• Enter information on market size here
Market Structure
• Enter information on market structure here
Key Players
• Enter list of key players here
Confide
Phase 2: Supply Market Analysis
COMPANY PROFILE: (ENTER NAME OF KEY PLAYER HERE)
General Company Information
• xxxx
Note: The items below are a guide for a company profile. You may add/delete/modify items. Crete profiles for each of the key players you have identified.
Market Share
• Enter information here
Key Customers
• x
Revenue Breakdown
• By region, business unit etc
Financial Trends
• Key financial trends
Leadership
• Key facts on leadership
Confide
Phase 2: Supply Market Analysis
Price Drivers for Category
PRICE DRIVER MAP
Note: Enter a map of the price drivers on this page, highlighting the key drivers OR Complete the table below:
DEMAND DRIVERS SUPPLY DRIVERS COST DRIVERS
x x x
x x x
x
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Phase 2: Supply Market Analysis
PRICE TRENDS
ENTER TABLES AND/OR GRAPHS SHOWING PRICING TRENDS FOR CATEGORY:
Confide
Phase 2: Supply Market Analysis
PRICE DRIVER TRENDS
DEMAND DRIVERSTREND
(UP,DOWN,FLAT)
IMPLICATION AND IMPACT ON PRICE
x x
x x
x x
SUPPLY DRIVERSTREND
(UP,DOWN,FLAT)
IMPLICATION AND IMPACT ON PRICE
COST DRIVERSTREND
(UP,DOWN,FLAT)
IMPLICATION AND IMPACT ON PRICE
OVERALL OBSERVATIONS ON FUTURE PRICE TREND
Short Term Long term
.
Confide
Phase 2: Supply Market Analysis
FIVE FORCES ANALYSIS
BARGAINING POWER OF BUYERS BARGAINING POWER OF SUPPLIERS (TIER 2)
1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10
Enter rating by shading the rating scale above to the appropriate score and enter rationale here
Enter rating by shading the rating scale above to the appropriate score and enter rationale here
THREAT OF NEW ENTRANTS RIVALRY AMONG EXISTING FIRMS
1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10
Enter rating by shading the rating scale above to the appropriate score and enter rationale here
Enter rating by shading the rating scale above to the appropriate score and enter rationale here
AVAILABILITY OF SUBSTITUTES
1 2 3 4 5 6 7 8 9 10
Enter rating by shading the rating scale above to the appropriate score and enter rationale here
Confide
Phase 3: Strategy Development
CATEGORY ATTRIBUTE CHART
CATEGORY ATTRIBUTES 1 2 3 4 5 6 7 8 910
COMMENTS
Internal Attributes
Customization
Spend concentration
Switching costs
Business Impact
Supply Attributes
No. of local suppliers
No. of global suppliers
Lead time
Risk of shortage
Market volatility
Power Attributes
Value to current suppliers
Value to potential suppliers
LOW HIGH
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Phase 3: Strategy Development
CATEGORY POSITIONING: VALUE TO SUPPLIERS
Note: Position your category by drawing a circle in the appropriate place and then enter explanation in the comment box
Value to current Suppliers
High
High
Low
Comments:SUPPLIER DEVELOPMENT CUSTOMER DOMINANCE
SUPPLIER DOMINANCE CUSTOMER STRENGTH
Valu
e t
o P
ote
nti
al
Su
pp
liers
Confide
Phase 3: Strategy Development
CATEGORY POSITIONING: BUSINESS IMPACT AND SUPPLY RISK )
Note: Position your category by drawing a circle in the appropriate place and then enter explanation in the comment box
Risk of Shortage
High
High
Low
Comments:LEVERAGE STRATEGIC
NON-CRITICAL BOTTLENECK
Bu
sin
ess I
mp
act
Confide
Phase 3: Strategy Development
CATEGORY POSITIONING: BUSINESS IMPACT AND MARKET VOLATILITY
Note: Position your category by drawing a circle in the appropriate place and then enter explanation in the comment box
Market Volatility
High
High
Low
Comments:STABLE-HIGH IMPACT VOLATILE-HIGH IMPACT
STABLE-LOW IMPACT VOALTILE-LOW IMPACT
Bu
sin
ess I
mp
act
Confide
Phase 3: Strategy Development
RISK ANALYSIS
Note: To evaluate multiple strategy statements please make as many copies of the table below as necessary
Strategy Statement (STARS)
RiskBusines
s Impact
Initial Assessment
Comment/Mitigation Strategy
Final Assessment
Probability
Risk Zone (Red,
Orange, Green)
Probability
Risk Zone (Red,
Orange,Green)
Confide
Phase 3: Strategy Development
BENEFIT ANALYSIS
Note: To evaluate multiple strategy statements please make as many copies of the table below as necessaryStrategy Statement (STARS)
Benefit $
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Phase 4: Supplier Selection
SELECTION CRITERIA AND WEIGHTS
CRITERIAWEIGHT
(Enter % below)SUBCRITERIA (IF ANY)
WEIGHT % (IF ANY)
COST
RELIABILITY/QUALITY
BUSINESS
ENVIRONMENT/SAFETY
SUPPLY CHAIN
TECHNOLOGY
TOTAL 100%
Confide
Phase 4: Supplier Selection
SELECTION CRITERIA REQUIREMENTSCOST
CRITERIA/SUBCRITERIA MUST HAVE NICE TO HAVE
RELIABILITY/QUALITY
CRITERIA/SUBCRITERIA MUST HAVE NICE TO HAVE
BUSINESS
CRITERIA/SUBCRITERIA MUST HAVE NICE TO HAVE
Confide
Phase 4: Supplier Selection
SELECTION CRITERIA REQUIREMENTS (CONTINUED)
ENVIRONMENT / SAFETY
CRITERIA/SUBCRITERIA MUST HAVE NICE TO HAVE
SUPPLY CHAIN
CRITERIA/SUBCRITERIA MUST HAVE NICE TO HAVE
TECHNOLOGY
CRITERIA/SUBCRITERIA MUST HAVE NICE TO HAVE
Confide
Phase 4: Supplier Selection
RFQ QUESTIONNAIRE
Note: Enter the criteria or sub-criteria in the shaded cell and then develop a list of specific questions for each criteria/sub-criteria. Please make as many copies of this table as necessary
ENTER CRITERIA/SUBCRITERIA HERE
Confide
Phase 4: Supplier Selection
(ENTER COMPANY NAME HERE)
STRENGTHSEnter Strength here
WEAKNESSESEnter weakness here
OPPORTUNITIESEnter opportunity here
THREATSEnter threat here
MAKE AS MANY COPIES OF ABOVE SWOT ANALYSIS FORM AS NECESSARY AND INSERT HERE
Confide
ACTION PLAN
Note: This action plan is intended to document those activities that need to be completed after the workshop.
Action item (What)Person responsible
(Who)Completion Date
(When)