What is sourcing?

Sourcing is the process of learning about and understanding the characteristics of products, services, and supplying markets.

By learning about the product to be acquired, the service, and the supplying market, companies will have the tools to identify business advantages and disadvantages, being better prepared to design more assertive strategies for their projects.

See some characteristics of a sourcing service below:

Identifying possible suppliers

Finding suppliers that offer the required product or service, gathering information on where these supplying companies are located, which ones are market leaders, possible alternatives to market leaders, among other important factors.

Defining which suppliers should be contacted

With a list of known suppliers, ranking them from the most to the least important, to ensure a more assertive approach.

Creating an approach to suppliers

With basic information about each supplier, defining an approach as well as an action plan.

Contacting suppliers

Making simple and clear requests for proposal. Adding important information for decision-making and avoiding requests with details that are unnecessary for the initial contact.

Managing suppliers

Following up on previous talks, keeping the database up to date to ensure the assertiveness of procurement strategies.

Building a relationship with suppliers

From the analysis of results and responses, building a relationship with suppliers and starting more targeted negotiations, with detailed information about purchase operations.

Making decisions

After reviewing suppliers, products, and services, defining which will be the best purchase options and starting the acquisition process.

Sourcing can improve your procurement department and also add value to your supply chain.