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vendor management services, lead generation in india
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In most cases, purchases account for one of the largest if not the largest part of the total cost of a product or service. Thus, the importance of vendor management services is self-evident. Though many times the terms sourcing and procurement are used interchangeably, they actually represent two fundamentally different concepts. Sourcing refers to the value added process of selecting suppliers and the respective cooperation scheme and it must be supported by advanced analytics & market intelligence, supplier performance information and a concrete and well-developed vendor management strategy. On the other hand, procurement refers to the transactional of the relationship and should be streamlined as much as possible in order to achieve efficiency.
However, the task of strategic planning within vendor sourcing is often not performed properly despite the fact that supply-base management processes contribute extensively to business-unit and company-wide goals. This results in “disconnected” sourcing from company goals. Furthermore, when no clear directions and standardised processes exist to develop and apply a sourcing strategy, buyers commonly apply their own way of thinking and patterns of buying often resulting in sub-optimal use of company’s resources.
In most cases, purchases account for one of the largest if not the largest part of the total cost of a product or service. Thus, the importance of vendor management services is self-evident. Though many times the terms sourcing and procurement are used interchangeably, they actually represent two fundamentally different concepts. Sourcing refers to the value added process of selecting suppliers and the respective cooperation scheme and it must be supported by advanced analytics & market intelligence, supplier performance information and a concrete and well-developed vendor management strategy. On the other hand, procurement refers to the transactional of the relationship and should be streamlined as much as possible in order to achieve efficiency.
However, the task of strategic planning within vendor sourcing is often not performed properly despite the fact that supply-base management processes contribute extensively to business-unit and company-wide goals. This results in “disconnected” sourcing from company goals. Furthermore, when no clear directions and standardised processes exist to develop and apply a sourcing strategy, buyers commonly apply their own way of thinking and patterns of buying often resulting in sub-optimal use of company’s resources.
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