Sourcing is the process of identifying new suppliers / vendors, raw materials for new products etc. This includes activities such as getting supplier / vendor supplier information, uploading the information into the system, defining pricing, lead time, minimum order requirements etc. In most instances, it is a one-time process; however parameters such as price etc. are variable and changes according to supplier requests.
Procurement is a repetitive process involving placements, confirmations and follow-up of orders with suppliers until delivery.
Given the growth of the global market, sourcing and procurement processes have become more complex for business due to various geo-cultural and language differences. To eliminate these issues, and address spend and additional cost savings to the bottom line, it is important to have a highly efficient sourcing services model.
At Global Value Web (GVW), we believe strategic sourcing is a process in which we harness the skills of the supply industry to best optimize sustainable and competitive advantages for our customers. This is accomplished by developing a secure and responsive supply base that is capable of providing quality, delivery, costs, technologies, flexibility and services to meet the current and future business needs of our clients.
We envisage each commodity’s scope of global sourcing activities will be dictated by type & profile of commodity. Based on the commodity characteristics & global sourcing potential, scope will be suitably enhanced.
We offer strategic sourcing solutions for businesses of all sizes, including the small to mid-market and the Fortune 500.
GVW’s proven approach for global sourcing:
- Understand business drivers and organizational objectives
- Establish commodity requirements and BM goals
- Establish market feasibility study
- Assessment of sourcing advantage in new market.
- Establish high level project plan
- Risk assessment & size potential benefits
- Conduct commodity research and develop competence
- Understand product specifications and commodity challenges
- Set initial evaluation criteria
- Evaluation of potential low cost markets
- Analyze market structures and cost dynamics
- Identify players in the target markets
- Pre-qualification of the suppliers
- Audit & evaluate supplier facilities and systems
- Review and establish quality systems
- RFx or Traditional Sourcing
- Bid evaluation / Part Approval
- Critical Issues & Performance
- Contract Terms & Logistics
- Implement Project plans
- Set logistics partners
- Manage commodity transition
- Standard performance vs. plan
- Problem resolution
- On-going quality management
- Management to SLA
- Performance review
As a professional sourcing service provider, we are able to enhance the service levels of our customer’s sourcing/procurement division and sustain it as follows:
- Our desire is to build a long term relationship with our customers as a Global Professional Service provider.
- A pilot project and the potential of the initial projects provides the ideal opportunity to start building a foundation team, thus meeting a critical success factor in global services; a long term partnership that is beneficial to both parties.
- In addition to the foundation team, Global Value Web is able to scale for individual projects
Reliability, Quality & Speed
- A service is the combination of people who are processing in a controlled manner, using adequate technology, in order to deliver the final output at the right quality at the right time to the right person.
- Reliability in output stems from controlled processes
- Interaction with customer stakeholders throughout the process
- The GVW management team ensures the customer obtains the best value from the service to ensure quality standards are met consistently.
- Discussing the service solution with the client; people, process & technology provides full visibility, as well as the means to control the process.
- Processing with good interaction with our customers assures that the team is focusing on the right deliverable.
- With controlled solution design Global Value Web will be able to take matters out of hand in a controlled manner, aiming to reduce customer’s management attention to an optimal level.
- Performance is obtained through structure, measurement and continuity, resulting in quality in the execution.
- We propose to have a dedicated small base team available who gradually build a customer related knowledge base resulting in fast response time, as well as rapid and correct interpretation of customer needs.
Optimized cost base
- Delivery of these services is at an optimized cost to our customers.
- We aim to provide the best price / performance ratio that is possible in a global market place.
- Price is determined by the combination of people, process and technology. How these components are put together determines the cost.
- Our aim is to work with our customers in a partnership mode where the objectives of both companies are respected.
- We also aim to achieve an operating margin that allows the global professional services business to grow.
- Apart from transparency in delivery, Global Value Web aims to provide transparency in proposals; pricing, effort estimates and actual effort, and continuous process improvement.