University Of Phoenix
September 13, 2010
The method of sourcing is an organized procurement process that is geared to continuously improve and reexamine the purchasing methods of a business. The characteristics of a sourcing procedure of a global business consist of numerous stages. The flowchart below is the simple process of sourcing an item. Development of a strategic sourcing plan is driven by the recognition that tactical sourcing will not succeed in developing a supply base that will yield the benefits of collaborative relationships and alliances (Burt, Dobler, & Starling, 2003).
The initial step of the sourcing process involves the team decided on the items that need a quote. This is the requirements for the business. This process is completed by the production team and then sent to the sourcing team. This is the first step in the sourcing process. The request is the next step in the sourcing process. Request for quote
In the second step, the sourcing team will find the companies that can provide the service that is needed. The sourcing team will take the information given in the requirements to develop the request for quote. This can be sent to one vendor or multiple vendors. This will depend on the time frame that the product or service is required. The sourcing team will be the go between for the vendor and production. This request can be send via fax, email, or in EDI format if it is a vendor that is already in the company’s system. Usually the vendor will reply that the request for quote was received and give a date to expect when the quote will be returned. Evaluation of bid or bids
Once the quotes are returned to the originating company, the sourcing team will meet with the production team to discuss the quotes. This process will help the sourcing team define what the requirements are and narrow down the field of who the...