Question

Procurement cost analysis

-Describe the process of strategic/ tactical sourcing

-Explain how to approach cost analysis of specific category (i.e. supply chain function

Answer 1

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Tactical sourcing is related to short term activity goals that focus on its transactional areas. It is commonly used in manufacturing units for companies that are not too big rather, small to medium size. It can be an approach that can be reactive in nature and focuses on optimal prices during the purchase or fulfilling the supply needs as and when required.

tactical sourcing basically digs into what a merchant is eligible for doing in relation to help a corporation. Rather, most order processes utilized in tactical sourcing are directed on giving production operations with the assistance it needs.

Profit for the company and the efficiency of the company can improve if the cost is analyzed in the supply chain effectively. To achieve this company needs to focus on a few of the perceptions data important in the supply chain management, no matter what size or industry.

-focus on what customers want rather than what you think customers want. It's quite important to deliver or transport only those products in which customers actually need it rather than just thinking or forecasting what customers need. This saves time while transporting.

-supply chain strategy. As soon as it's clear what customers are looking for exactly it's important to have a strategic supply chain management. Once strategy and tactics are clear to them then time is not wasted on the activities that aren't important to the bottom line.

-sales and operation planning: it's important to have tea plan before setting up the system and start working on it. Sales and operation planning is a process that it give information and brings the people into a structure and is the single plan that defines the entire functional department.