Question

Write a brief outline of the Role of Sourcing in Supply Chain and What is the most important thing about it? iIt should be 2-3 paragraphs.

Answer 1

ROLE OF SOURCING IN SUPPLY CHAIN:

• Source of supply chain is one of the major thing that is used in sourcing the goods and services that are required to purchase if some organization is in supply chain field. It’s very important whether you want to in-source and out-source of products through supply chain.
• The complete process of getting profits is involved in the sourcing of products in supply chain management.
• Identifying the right source that can result in performing proper operations that can result in higher quality with lower cost for the particular operation.
• In sourcing supply chain more efficient procurement transactions can significantly reduce the overall cost of purchasing the products. This is the more important for items for which a large number of low -value transactions occur.
• The proper designs of goods are easier to manufacture and distribute which again results in overall low costs.
• To execute the operation in sourcing the organization needs to purchase the raw materials, components, products and services to perform the operations. For any supply chain management it’s very important to decide whether to outsource the function to perform in-house.
• Sourcing in supply chain the appropriate sharing of risk and benefits in it results in higher benefits or profits to both the industries that is to buyer and supplier.
• Firms that can achieve lower purchase price by increasing the competition through the use of aucion.In auctions so many companies will have competition so with the auction technique they can gain more profits with huge competition between companies.
• The sourcing decisions are very important and they vary from firms and industries.
• The outsourcing of products to distribution and its package is given to the third party to perform the operations to reach the goods to its customers.

IMPORTANT THINGS IN SOURCING IN SUPPLY CHAIN:

• It’s very important to adapt and move easily quickly in supply chain is one of the important steps for execution of the product quickly in the market. The will ensure the demand along with supply to the market with equal opportunities and risks.
• The equal demand and risk needs to be controlled by supply chain to changing market opportunities and events. Companies should plan accordingly to supply the products according to the market demand.
• Adopting a demand driven planning and business operational are important to operational model to demand insights and demand shaping is the right prediction and contingency planning tools that ensure the a complete view and response to risks such as suppliers they are going out of the business and political disruption and natural disasters are the main affecting things to manufacture industry.
• The basic important of the organization is adjusting pricing and promoting its strategies to shape a demand and move an additional product quickly.
• As the market is growing globally the sourcing of supply chain are also increases with various factors like increase of technology in current generation. Products available in so many online sources and products that are available in the market with its prices.
• Every activity is to be planned accordingly like product design, sales and supply of the product according to the market demand.
• Always ensure reliable and predictable supply these will ensure the stakeholders and customers to meet their service levels. Always predictable supplies of goods are important in the market to avoid the shortfall of goods in the market. In order to get the excellence results in the market.