Strategic sourcing

Business

planning

Spending analysis

Supply analysi

s

Sourcing strategy

Supplier selectio

n

Agenda

Business planning

Business

planning

Spending analysis

Supply analysi

s

Sourcing strategy

Supplier selectio

n

Business planning

Business goal

Cost down

QualityOn time delivery

Strategic sourc-ing

(supplier selec-tion)

Drawing review

Tooling making

Sample test

PPAP

Start of pro-duction

1/1 1/21 2/10 3/1 3/21 4/10 4/30 5/20

Start dateFinished

Strategic goal Planning with schedule

Spendinganalysis

Business

planning

Spending analysis

Supply analysi

s

Sourcing strategy

Supplier selectio

n

Spendinganalysis

Casting31%

Machning17%Hard ware

9%

Supplier A28%

Supplier B13%

1. Categorization2. Year spending analysis3. Total spend by

category4. Total spend by supplier5. By country6. By product life cycle7. By technic requirement8. By quality requirement9. By size , material10.By 80/20……

Spendinganalysis

0

20

40

60

80

100

120

1. Standard cost structure analysis

2. Total cost of ownership3. Material cost is the

majority4. Tooling cost5. Labor / equipment cost6. Return of investment

Supplyanalysis

Business

planning

Spending analysis

Supply analysi

s

Sourcing strategy

Supplier selectio

n

Supplyanalysis

1 2 3 4 5 6 7 8 9 100

102030405060708090

100

Supplier assessment scoring Quality

Cost

Delivery

ServiceTechnique

Asset

After sales

0

5

Systematic supplier assessment for right potential suppliers

Sourcing strategy

Business

planning

Spending analysis

Supply analysi

s

Sourcing strategy

Supplier selectio

n

Sourcing strategy

competitive

rivalry

Threat of new

entrants

Bargaining power

of buyers

Threat of substitut

e products

Bargaining power

of suppliers

1 2 3 4 5 6 7 8 9 100

2

4

6

8

10

Metal

Plastics

Demand power

Supp

ly p

ower

Porter five forces Purchase chessboard

Supplier selection

Business

planning

Spending analysis

Supply analysi

s

Sourcing strategy

Supplier selectio

n

Supplier selection

Material group

(P/N,QTY,spec…)

Potential supplier

list

RFQ-request

for quotati

on

Quotation

reviewNegotia

tion

Supplier scoreSupplier 1

Supplier 2

Supplier 3

Price 35% 4 1 2Quality 35% 4 2 4Delivery date 10% 5 5 5Payment term 5% 3 3 3Product line coverage 5% 5 2 3

Service level 5% 2 5 1Distance 5% 5 5 3Total 100% 4 3 3

RFQ bidding process Supplier scoring matrix

Thank You ！Nick Du / 杜刚