Strategic Sourcing and Supply at Federal Express - Assignment Example

The key element in the first stage of the strategic sourcing process is carrying out research and an extensive one for that matter on the sourcing origin including who it is, how much it will cost, their competition, how they function, and their history with other suppliers. The second step is to select a strategy of sourcing after analysis of the information and making decisions regarding issues such as proposal making and approach. A supplier portfolio analysis on issues such as qualification and satisfaction of requirements of the potential suppliers is done at this stage after the research is carried out and before any requests for proposals are done.

Another supplier evaluation research is carried out on the potential suppliers to ensure nothing has been overlooked before making a final decision. Selection of the supplier, negotiations, and sending out the RFPs is done at this stage. Selecting the best source and integrating any conflicts in order to ensure the contract will be workable and finally is the monitoring of the supplier through the FedEx Supplier Scorecard system. Supply chain management comprises a team of individuals assigned different roles and different suppliers to handle.

Only one individual associate from the group is assigned to every supplier. The work of the associates is to take responsibility and oversee all the groundwork necessary including being in charge of the research and profiling. They are also tasked with the responsibility to manage and nurture the relationship with the suppliers as well as ensuring that the needs of FedEx are well taken care of by the suppliers. They also keep close tabs on the happenings in the market and the other suppliers as well and any changes initiate their renegotiation with their current suppliers.

This is carried out to prevent them from being short-changed or losing out on new innovations and deals that will make them lose out the competitive advantage they currently hold in the industry. They also handle the decisions revolving around strategic management which means they coordinate the supplier and engineering groups as well as dealing with any challenges brought about by the sourcing process. The first step of the process that includes research and profiling is carried out by almost all the companies before selecting the best suppliers in the market.

This is important for all the companies to doing order to eliminate fraud in the market, ensure they get a good bargain and deal for their money as well as being provided with only the best as long as they can afford it. Research and profiling also save time. The other step that applies is the negotiation that will lead to the making of the contract to cement the business relationship between the supplier and purchaser. The negotiation is important to all companies to prevent any side from feeling short-changed before sealing the deal for a period of time.

The negotiation is also for record purposes in the contract and for future reference. The last step FedEx shares are the monitoring process. This monitoring is done to ensure that the terms of the contract are still be followed and to also renegotiate in case of changes in the marketplace.