5 Popular Approaches To Sourcing Suppliers

How easy is the process applied by procurement practitioners to get the best supplier(s) for a contract or project?

If you said it isn't exactly easy peasy… you are right😃

Oftentimes factors like the nature of your project, current market situation, available suppliers, and quality of work required determine the approach you employ in sourcing the most suitable supplier(s).

If you're looking to source the best supplier for your project, here are 5 popular approaches to sourcing suppliers you can apply:

📍 Single Source: This is a non-competitive method, as goods and services are only requested from a single supplier. It's always used in rare circumstances like emergencies, or when only one supplier meets the requirements of the need at hand.

📍 Dual Source: This approach involves using two suppliers for a project, product, or service, Dual sourcing is used to reduce the risk of relying on a single supplier whilst meeting up quickly with increased customer demand.

📍 Multiple Sourcing: This is a competitive procurement method that allows more than two suppliers to bid for a contract. Oftentimes this approach is an incentive for suppliers to cut down costs thereby leading to cost savings for the organization.

📍Open Tendering: This is a competitive process that allows as many suppliers both old and new bid for a contract. In this case, prospective suppliers will be put through a prequalification where they'll demonstrate their technical expertise, and ability to handle the project in question and showcase why they are the best fit.

📍 Selective Tendering: This is a restrictive method, although less competitive, that pegs the request for tenders (RFP/Q) to a select few suppliers. In this case, only invited suppliers can submit their proposals. These suppliers are assessed based on their track record, quality of work, and ability to handle the project at hand.

If you want to learn how to deploy a sourcing process that delivers the best supplier for your project or contract, be sure to visit academy.efemini.com and enroll in a course today!