MNP3701 Assignment 1 Semester 1 2023{211581}

7 Step Strategic Sourcing Process - -Spend analysis Supply Market Assessment Total Cost Analysis Supplier Identification/Evaluation Sourcing Strategy Supplier Negotiation/Selection Contract Management/Negotiation -Maverick Spend - -Spending in a supply category that is not under a strategically sourced contract -Maverick Spend VS Spot purchase - -Spot purchase someone needs something that requires going off contract Maverick spend is from someone who does not want to purchase off a blanket contract -Soul Source - -Soul Source is not a choice, there is only one supplier available -Single Source - -You choose to only source from one vendor. -Greg Schumacher - -Aggregated demand for all categories at HP 50 Billion in Spend 45billion spend on top 50 suppliers 90% SD Max Leverage -Ways to aggregate demand - -Combine category spend from the geographically diverse procurement contracts Combine category spend from diverse strategic business units/operating companies(master service contract) Combine spend from related commodity classifications extend the term of contracts -Spot Purchase VS Blanket Contract Blanket contract - -Blanket contract Covers items and conditions on who is responsible for shipping covers negotiated price can cover over 100k items