Prepare a summary, accompanied by a flowchart, that describes/outlines the steps that occur in a typical sourcing process for a global manufacturing firm. Provide a brief evaluation of the steps as illustrated in your flowchart.
In your summary, be sure to include the following:
- Translating corporate objectives into procurement goals
- Establishing business unit requirement processes
- Conducting supply market research
- Setting material management goals
- Strategic execution
Additionally, address the challenges and opportunities for insourcing versus outsourcing parts, as well as discuss the advantages and disadvantages of global versus domestic sourcing. Be sure to properly cite your references.
The response addresses the queries posted in 1299 words with references.
//In this paper we have to firstly understand about the process of sourcing. We should have the knowledge that how the process of sourcing works and what are the steps in this process, so that we can effectively describes the flow chart and its importance.I am also directly providing you the various steps in detail manner that will help you to develop a flow chart process, for example: //
The process of Sourcing refers to an institutional procurement method aimed at constantly improving and re-evaluating the purchasing activities of a company (Ramaswamy & Namakumari, 2002). The typical sourcing process of a global organization consists of many steps which are shown in the form of flow-chart in the following manner (Nishiguchi, Toshihiro, 1994).
Step 1- Qualification
The initial step of the sourcing process involves the supplier by sending him an invitation for delivering the qualification material. As it is the first step of the process, it serves as a foundation for the next steps (Sourcing Process, 2008).
Letter of Invitation: With the help of a pre-warning letter, the suppliers are invited to qualify for the process.
Submission of qualification material: The qualification letters are submitted by all the suppliers including the existing ones.
In the second step, another invitation letter and the tender material is delivered to the interested supplier.
Invitation letter: A pre-warning to bid is received by the single point of contact at the supplier's end. All the concerned departments and the global resources are re-activated by the supplier.
Tender material: A tender document is issued by the organization composed of an elaborate Definition of Scope, legal & commercial terms & conditions, template for response and Cost Breakdown Form. An evaluation of the supplier's capabilities, value creation and incurred benefits is done by the organization. Hence, a number of suppliers are invited to participate in the step 3 on the basis of this evaluation.
Step 3- Workshops
They are a vital component of the sourcing process. To attend the cross-functional workshops, the suppliers are invited.
Format of the workshop: The workshops concentrate on ...
The solution gives 6 steps to creating a flow chart in 1058 words with 4 APA references.