Successful sourcing professionals consistently analyze and adjust their sourcing strategy. Now, more than ever, the key to crafting a successful risk mitigation plan for a global supply base is having detailed information for hundreds of suppliers across regions & capabilities readily available to support agile decision-making. Having this information in one online, centralized database improves and increases productivity for sourcing professionals.
According to Deloitte’s 2021 Chief Procurement Officer survey, supply assurance has been the biggest challenge over the last 12 months.
- 56% of firms stated their key suppliers were bankrupt or severely hampered
- 41% of firms needed to expedite shipping to keep critical lines flowing
- 36% of firms say the current supply base is failing to meet new requirements
Diversify suppliers across continents
A sourcing strategy should never focus on one continent. Supply, demand, pricing, and capabilities are constantly fluctuating depending on internal and external factors. Tariffs, a global pandemic, politics, climate change, staffing concerns, war – the list goes on. If a business isn’t ready to pivot sales and sourcing outreach at a moment’s notice, it will be several steps behind in an industry in constant change. Having a strategic risk mitigation plan in place along with utilizing a strategic sourcing tool enhances an organization’s capabilities for sourcing global manufacturers and suppliers for OEMs.
Improve availability across manufacturing commodities and processes
Having a database of suppliers that spans several commodities saves time, manpower, and revenue. If preferred suppliers run into transportation and shipping issues it can derail an entire project and cause a massive price increase. Being able to quickly source new suppliers to send out multiple RFQs in an existing database is a game-changer. Organizing and segmenting those suppliers by both process and commodity before sending out those RFQs is even better. Adding a global supplier selection tool to sourcing technology is a win-win for any organization.
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Utilize advancements in sourcing technology
Effective and timely supplier relationship management is more important than ever. Complete supplier profiles in one online tool create efficiency and streamline sourcing & procurement processes for an organization. Quickly sorting through contact information, location, on-site equipment, processes, capacity, quality ratings, and capabilities reduces the need for spreadsheets, emails, and multiple conference calls. On-site audits with photos, videos, notes, and ratings build trust and confidence and validate the credibility of suppliers. All of this not only benefits sourcing professionals but also increases business opportunities for suppliers.
Organize your supplier information
Audits, contacts, locations, equipment, processes, capacity, capabilities – the list goes on. Having a proactive communication plan for sales, sourcing, and suppliers streamlines and simplifies sourcing operations. Running reports to compare suppliers creates an efficient workflow and cuts down on decision-making time. Having a system in place that incorporates strong communication as well as advanced technology for a team is important.
Are you looking to expand supplier networking across the globe and improve sourcing processes? MESH Sourcing offers a unique online tool to simplify and streamline operations for an entire team. As MESH engineers across the globe continue to expand the database and add geographically diverse suppliers, you won’t want to miss out on this strategic and efficient global sourcing tool for manufacturing professionals.
Learn more about the MESH network at www.meshworks.com.