· First of all, fully understand your spend category. Physical locations and stakeholders of all operating units needs to be identified.
· Try and understand the current trends of the market and key supplier marketplace dynamics.
· Do a survey for both potential suppliers and incumbent. These types of surveys can help in evaluating the capabilities of a supplier.
· Develop a sourcing strategy.
· Develop a communication plan to attract maximum suppliers.
· Find out the cost differences by comparing total value of outcomes. Negotiate with suppliers and select the suppliers.
· Always step forward to communicate with new suppliers by developing a new communication plan for them.
2How does the governance structure for supply chain management at Federal Express support the strategic sourcing process?
The governance structure for supply chain management at Federal Express supports the strategic sourcing process in the organization. The organization has a centralized “Strategic sourcing and Supply” group and it follows a sourcing model that is centre led. This governance structure enables the organization to leverage its different sourcing as well as contracting functions for all the companies in the Fedex family. For example Federal Express has a single and central corporate account for each and every negotiation efforts that it puts towards its procurement of office supplies. This improves the strategic sourcing process as each unit of FedEx is not required to run its separate contract. Such a structure also helps the company in benchmarking the supply market. Suppliers can be monitored and evaluated on a regular basis.
3Are there elements of the strategic sourcing process used at Federal Express that apply to other companies?
Sourcing is the main aspect of the value chain , well defined sourcing plan can help a lot to a company is cost saving and quality . it is always difficult for a company to find best sourcing partner which can help them to achieve competitive advantage .when company plan for sourcing there are various questions they have to face like how choose you alternative from various option? How will you source ? what is your requirement ? what will be the cost ? . for that firm have to strategic sourcing process. FedEx is the largest express transportation company and have achieved success by using the strategy of sourcing . Yes element of the strategic sourcing process used at federal express that apply to other companies also. Like The team will ensure that they are clear on the user requirements from the corporation, from this company can define questions like who are the current supplier , is there any issue with the current supplier? What are the other options. After than Fedex team do the in depth supplier research from this process company can find like supplier are as per the requirement or not , how they are giving their services .from that research they can prepare list of supplier from which they can decide best option they can choose . from the process company also look for the return on investment for the sourcing as cost is the main aspect of any company . other company can also use the scorecard that used by Fedex in which they gave score to different supplier based on quality , service , commitment , response form the scorecard it is for them to identify supplier with high score and low score . In a way strategic sourcing can help companies in many way like achieve profit , save cost ,competitive advantage and Fedex is the best example of strategic sourcing plan .