Sourcing first time right !

It is not easy but it isnt tough either if we have the pre buy protocol in place. Rigourous, tested and transparent.

Once we have a roadmap of products/Qty/Price to be bought the real game begins !



- Do we have data of products that are traditionally competitive in a certain region,country ?

- Do we have data of materials/inputs by which desired product is manufactured.

- Do we have cost structure defining both above ??

- Do we have a reliable line of supplies in required products ?

- Do we know from where our competion is sourcing ?

- Do we know the strengths and weakness of our supply lines ?

- Do we have a software which automatically generates enquiries to approved suppliers as well as potential suppliers based on database ?

- Is our software capable to auto generate lowest / better quotation from suppliers based on customisable criteria pre-feeded ?



Once suppliers are shortlisted it is the time to start negotiation - price, terms, specification, delivery etc.



For retailers the price and quality are two sides of a same coin hence these two parameters has to be thoroughly established and keenly debated. Price factor cannot obfuse the need for quality parameters and vice versa. On price/costing front the effort should be finding ways of adding some more value than competition. How this can be done or accomplished seperates a good sourcing regime from a innovative sourcing regime. Battle is not between mediocre and good but between good and innovative. Innovation even in conventional product and sourcing is key to survival of a retail chain.



Rest the retail maths takes care of !




More next time !