11. Sourcing Best Practices

Sourcing best practices. There’s several things to consider when setting up a sourcing strategy in a company. One is how do we pick the best suppliers? And that has to do with supplier evaluation. We need to setup guidelines of what we would like in a supplier, and then actively go out and search for potential suppliers, evaluate them and then keep the ones that meet our requirements, while rejecting the ones that don’t meet our requirements. Another part of this is score carding, and score carding is a continuously updated file, usually it’s done electronically, where we track the supplier against specific metrics that have been agreed upon at the beginning of this relationship. So for example, we agreed on certain lead times, certain quality matrix, certain prices or even cost reductions that are to be achieved over time. And we’re always providing our suppliers feedback on these different categories. So they know where they stand and we know how well they’re doing against our expectations.
Continuous monitoring of supplier performance and keeping just suppliers that meet our requirements are two central tenants of sourcing strategy, and I would call them best practices. The majority of fashion items are produced by contract manufacturers and so are electronics.
The way you manage your organization using contract manufacturers is slightly different than if you had your own in house manufacturing. Because you’re relying very heavily on these other companies to produce your goods, you have to be very good in designing new products, marketing new products and overall management of the whole process from beginning to end. Contract manufacturers are essential in certain industry, and you cannot get by without them, but they’re shunned by others. For example, the auto industry definitely wants to keep manufacturing in house.
So how do we manage contract manufacturing? Well, it is typically a long term arrangement to manufacture items for us from beginning to end. Because we don’t necessarily have our in house manufacturing, we rely on these contract firms for everything from sourcing all the way through logistics. Now finally, let’s take a look at the product that you’re using. How did it get built?
In other words, what does Coursera do and how does the company operate? So Coursera provides a platform for you to be able to learn. And they do it with content sourced from multiple universities. So as I was building this course, I was asked by Coursera whether I would like to be a supplier of content. Therefore, I agreed, and the result is this course. What Coursera did on their own was marketing this course. They also provided the platform on which you are learning. So Coursera serves two functions. One is marketing, and the other one is distributing the content. And providing the conduit in which that content gets delivered to you, the learners. So I think Coursera created a win, win, win situation. I win because I can share my content with you. Coursera wins because they are a successful business. And you win because you are able to receive content from multiple sources in a unified, streamlined and polished manner.

Jim Rohn Sứ mệnh khởi nghiệp