Date: 23/11/2023
Program/Term/Group: Supply Chain
Management – Term 1
Purchasing is fundamental in the supply chain of an organization, this
ensures efficient supply and optimization of resources. In this context, five relevant
themes stand out:
1. The purpose of strategic acquisitions is to obtain the necessary raw materials or
materials efficiently, seeking to minimize costs, guarantee the necessary quality, and ensure
optimal conditions and delivery times for the company. This process is essential to ensure that an
organization obtains the necessary resources to meet its objectives and goals efficiently and
effectively. Here is an overview of the typical stages in the strategic procurement process:
• Planning: in which needs, the market, and development of procurement strategies must
be identified.
• Search and Evaluation of Suppliers: the main suppliers must be identified and how they
will be evaluated.
• Requisition and Request for Proposal (RFP) Development: Create detailed requisitions
and send requests for proposals to selected vendors
• Selection and Contracting: evaluate the suppliers' proposals, select the most appropriate
one, and carry out the negotiation and contracting.
• Execution and Monitoring: the implementation of the contract is carried out and the
supplier's performance is continuously monitored
2. Global sourcing refers to the purchase of raw materials, components or services from
companies outside the country of origin. Additionally, it seeks to take advantage of the
competitive advantages of different regions, optimizing costs, diversifying risks, and accessing
specialized resources. Due to the distance, the best way to ensure good supply is for suppliers to
have the mark of good quality worldwide, which is the ISO 9000 certification, which indicates that
the company's products and services have met quality standards. and that the company has
quality management processes implemented.
In this way, companies carry out supply in a comprehensive manner, not only taking into
account the costs and speed of delivery but also the quality that the supplier can provide.
3. Global outsourcing involves hiring a company in another country to manage certain
business operations. Among the services most commonly outsourced by U.S. companies globally
are manufacturing, IT, customer service, and human resources.
These are some of the main advantages of global outsourcing:
• Reduce costs.
• Tax incentives.
•New perspective.
• Expand quickly.
These are the main disadvantages of global outsourcing:
• Time zone differences.
• Linguistic and cultural barriers.
• Physical distance.
• Rules and regulations
4. Global Service Outsourcing: Similar to manufacturing, global service outsourcing
involves outsourcing specific functions to specialized suppliers in different parts of the world. This
facilitates concentration on the company's core competencies and can lead to greater efficiency
and quality in service delivery.
5. Developing Supplier Relationships: Establishing strong relationships with suppliers is
crucial to supply chain success. This involves collaboration, effective communication, continuous
performance evaluation, and the promotion of innovation.
The importance of managing supplier relationships has grown significantly as buyer and
supplier networks have become more interdependent and global. Therefore, developing long-term
relationships can generate mutual benefits and promote a more resilient supply chain.
Adding that there are suppliers that are critical for operational continuity, operational
excellence, scalability, and, ultimately, the profitability of a company. For example, while a
smartphone manufacturer's stationery supplier may have a limited impact on profitability, the
primary electronics supplier has significant influence, thus becoming a key strategic partner. Any
risks associated with the electronics supplier's operations represent a significant risk to the
smartphone company.
In summary, the strategy for acquiring goods and services involves a process that extends
from planning to establishing long-term relationships with key suppliers. Globalization and
outsourcing are essential elements of this strategy, enabling organizations to optimize costs,
mitigate risks, and focus on their core competencies.
References
AIMS Education, UK [@AIMSEducationUK]. (2016, July 19). Supplier Relationship Management
process - system, tools and types of collaboration | AIMS UK. Youtube.
https://www.youtube.com/watch?v=XibS0susCP8
CIPS [@cipsweb]. (2020, June 2). 7 Tips for successful supplier relationship management | CIPS.
Youtube. https://www.youtube.com/watch?v=Kvb_MFw2UQY
ISM-INDIA [@Ism-indiaOrg]. (2019, December 2). Webinar on “Strategic Procurement.” Youtube.
https://www.youtube.com/watch?v=pPooAf475pM
Secrets, S. C. [@supplychainsecrets]. (2011, February 8). Strategic Procurement - improvement
opportunities. Youtube. https://www.youtube.com/watch?v=danXsbr8WD4
Toolkit, M. S. [@MaRScentre]. (2015, December 21). A guide to contract manufacturing. Youtube.
https://www.youtube.com/watch?v=gxh-1KH2Lf0
What is global sourcing & how to create a sourcing strategy. (n.d.). Trademo. Retrieved November
23, 2023, from https://www.trademo.com/blog/global-sourcing-guide?
utm_source=google&utm_medium=cpc&utm_campaign=logistic_SE-
2023_Q4&utm_agid=&utm_term=&utm_creative=&utm_device=c&utm_placement=&gad
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