Sourcing Strategy

I use diverse tools and methods, that I have acquired mostly by practicing or learning by doing, during my Assessing, Consulting, Training, Facilitating, Coaching, Mentoring and Advising assignments.

Dinakar's Toolbox

I have been speaking live on LinkedIn, Facebook, and YouTube, a randomly picked tool or method from my toolbox for the week at 20:30 Indian Standard Time for 10-15 minutes. This week I will be speaking on Sourcing Strategy and today in my blog, I will briefly explain the Sourcing Strategy.

Introduction (Monday @ 20:30 IST on LinkedIn, Facebook, and YouTube): The sourcing strategy is very much needed for such products with many components going into the assembly – typically for the OEMs and Proprietary Component Manufacturers. In my experience a segmentation is needed before developing or optimizing the strategy. I have used the 4 dimensions for the segmentation to be done – Condition, Source, Class and Complexity.

Application (Tuesday @ 20:30 IST on LinkedIn, Facebook, and YouTube): I have experienced that the sourcing strategy is one of the fundamental barriers to achieving 100% On-time-in-full deliveries. While solving the problem of the full kit not being ready on time, I have often modified the sourcing strategy. During many reviews, especially on Inventory Turns, digging deep, the teams have realized that the sourcing strategy is out of sync.

Cons / Negatives (Wednesday @ 20:30 IST on LinkedIn, Facebook, and YouTube): Getting away from the day to day hectic, to analyze all the items being sourced is a huge challenge for the strategic sourcing and supply chain personnel who normally are under tremendous pressure 24×7 to keep the show going on. Ironically though, the cause for this firefighting normally is the supply chain strategy not being based on the total cost of ownership principle.

Pros / Positives (Thursday @ 20:30 IST on LinkedIn, Facebook, and YouTube): The flow can only be streamlined in manufacturing if the primary, secondary and tertiary packaging is optimized for the flow and end usage. Normally a decentralized storage strategy is the most optimum for the flow, which not only optimizes the space utilization but also optimizes the inventory levels, since the sourcing strategy is closely linked to the way the planning is practiced.

LIVE DIALOGUE WITH DINAKAR (Friday @ 20:30 IST on LinkedIn, Facebook, and YouTube): Dialogues and debates are excellent for developing clarity of thought and further learning. I invite you to participate in a live dialogue with me and share your experiences on sourcing strategy. I will basically function as a facilitator for a discussion. You may please use this link on Friday @ 20:30 IST to join:

Happy reading!

1 thought on “Sourcing Strategy”

  1. Dhananjay Kulkarni

    Good chance for getting incites on Sourcing Strategy. Looking forward at 8:30 pm every day

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