You’re starting a new job in supplier sourcing. What are the key things you need to know?

In supplier sourcing, key considerations include: understanding company needs, market analysis, supplier vetting for reliability, quality, and capacity, negotiating terms, ensuring compliance with regulations and ethical standards, managing relationships, assessing risk, and fostering innovation. It's crucial to grasp industry trends, cultivate communication skills, and employ data analysis for informed decision-making. Additionally, familiarity with supply chain logistics and cost management is vital for success.

The goal of supplier sourcing is to find a supplier capable of meeting the company's internal needs for the short and long term. First collaborate with internal customers to target their needs and requirements with clear technical specifications to understand the type of product to be sourced. It is also necessary to consider the quality, specific logistical requests, leadtime, delivery frequency, quantity to be delivered, cost.

Starting a new job in supplier sourcing, you should: Understand the industry and market trends. Learn company’s procurement policies and sourcing procedures. Identify key suppliers and evaluate their performance, reliability, and compliance with standards. Grasp the basics of contract law and negotiation techniques. Know the supply chain management software being used. Stay updated on global trade regulations and import/export procedures. Develop a network of contacts and sources for potential suppliers. Prioritize effective communication and relationship management skills. Be prepared to analyze data for informed decision-making.

Collect information to identify potential suppliers through: - the history of suppliers in the company's databases, which generally contains the supplier evaluation in terms of product experience, quality rating, delivery time, cost, service, etc. . - market research, trade shows, competitors of existing suppliers, online databases, industry reports, chambers of commerce. At this stage, potential supplier identification begins with the evaluation of suppliers who match the company’s needs and the impact these suppliers could have on the company’s organization. Therefore, risks must also be considered.

As you embark on your new role in supplier sourcing, it's crucial to thoroughly understand your market and suppliers. Research industry trends, competitor strategies, and emerging technologies to stay informed. Familiarize yourself with your suppliers' capabilities, performance history, and pricing structures. For instance, analyze past contracts, conduct supplier assessments, and establish open communication channels. By gaining comprehensive insights into both your market and suppliers, you can make informed decisions, mitigate risks, and drive successful sourcing strategies.

As you step into your new role in supplier sourcing, mastering negotiation and contracting skills is essential. Learn negotiation techniques, understand market dynamics, and identify areas for leverage. Practice drafting clear and comprehensive contracts, ensuring they align with organizational goals and legal requirements. For instance, negotiate favorable terms on pricing, delivery schedules, and quality standards, while also considering long-term partnerships. By honing your negotiation and contracting skills, you can secure beneficial agreements, mitigate risks, and drive value for your organization.

As you begin your journey in supplier sourcing, mastering the art of managing and evaluating suppliers is paramount. Develop robust supplier management processes, including performance metrics and regular assessments. For instance, establish key performance indicators (KPIs) such as quality, delivery timeliness, and cost-effectiveness, and conduct periodic supplier evaluations to ensure alignment with organizational objectives. By effectively managing and evaluating suppliers, you can foster stronger relationships, drive continuous improvement, and optimize sourcing outcomes for your organization.

To demonstrate their commitment to operating responsibly and sustainably, many companies apply CSR (Corporate Social Responsibility) policies when sourcing suppliers to ensure ethical and sustainable practices throughout their supply chain. When identifying potential suppliers, geographical area, for example, is an important consideration as transport costs and delivery times are influenced by geographical distance, depending on the CSR policy adopted.

An often-overlooked aspect of being successful in any role is understanding the needs and challenges of your internal stakeholders. From the moment you take on a new sourcing role, one of your first steps should be to meet with all of your internal stakeholders. Spend time with them to understand how they contribute to your organization and the challenges they face on a daily basis. Make sure the lines of communication are always open and include them at the beginning of any project which may ultimately require their approval. Once you gain their trust and they realize you value their input, they will help make completion of your projects flow much more smoothly.