Simple Tips For Sourcing Goods & Services

The sourcing of goods and services is one component of the procurement process every company undertakes so they can get the best value from vendors and also work with the right vendors whose values are aligned with their own. A company can source without following a formal process or it can use processes in place or a digital solution. Listed below are some simple tips to help you get the most out of sourcing:

 

  • Involve internal stakeholders, such as users and budget holders, from the outset because they will have an impact on the outcome of the sourcing activity and the use of any successful supplier.

 

  • Provide prospective suppliers with as much detail as possible about specifications, quantities, etc. so they can offer competitive quotes.

 

  • Use sourcing activities to review the prior purchases and how they were handled. You may be able to identify new efficiencies through this exercise.

 

  • Speak to potential suppliers to learn what’s new, as there may now be better solutions available

 

  • Set clear and objective criteria for evaluating supplier responses, including their relative importance

 

  • ‘Caveat emptor’ – let the buer beware. Make sure you read the supplier contract before signing and understand the buyer’s obligations and key dates.

 

  • You should plan any sourcing activity in advance and not wait until the last minute so that it can be done properly for maximum results

 

  • Be fair to all suppliers and remember that feedback is a gift, especially for suppliers who are unsuccessful in a sourcing activity.

 

  • Make sure to repeat the sourcing process at the end of every contract or every two years or so to ensure you receive the best value

 

For consistency, transparency and control over the sourcing of goods and services, develop a simple process that everyone can follow and keep records of all activities, or alternatively, use a specialist procurement software program, such as oboloo. To learn more about oboloo, please visit www.oboloo.com 

 

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