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How to Automate Sourcing Process

Reduce lead time

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How to Automate Sourcing Process a

Reduce lead time ,ead time is de.ned as t/e time ta0en 1rom w/en a

is 1elt to t/e time need is 1ul.lled!

In Procurement and Su22l3 C/ain4 t/is lead time cono1

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Com2onents o1 ,ead Time

Pre'Processing ,ead Time 5PP,6 7' T/is lead time isneeded 1or sourcing4 negotiation and order release

Processing ,ead Time 5P,6 7' Time ta0en 83 t/e Su22to manu1acture or 2rocess t/e material and get it re

1or s/i22ing Post Processing ,ead Time 5P,67 T/is is t/e time

consumed during s/i22ing4 recei9ing 4 :ualit3 ins2ecetc!

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Procurement Process

Once t/e Bu3ers get t/e re:uisition4 t/e3 start t/e 2called Sourcing!

In t/is 2/ase4 t/e3 identi13 t/e 2otential su22liers4 mt/e re:uirements to t/e su22l3 and negotiate t/e ter

and conditions! T/is sourcing 2rocess can 8e once in a 2eriod 5Yearl

>uarterl36 or on a regular 8asis!

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Procurement Process

Raw "aterials and Com2onents t/at are needed regularl3negotiated in Bul0 and a Rate contract is entered into!

T/is also called Blan0ed Purc/ase Agreement 5BPA6 orSc/eduling Agreement 5SA6!

Once t/e Rate contract is in 2lace4 as and w/en Re:uisitioarise4 t/ere is sim2l3 a release to t/e Agreement 1or t/e :needed!

"ost o1 t/e ERP S3stems li0e Oracle and SAP /andle t/is and t/is 2rocess can 8e automated!

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Frequent Sourcing

?or material 1or w/ic/ 2rice and deli9er3 @uctuate4 Bu3erto re2eated sourcing wor0 and t/is consumes lot o1 time!

?or eam2le as t/e 2rice and a9aila8ilit3 o1 Steel 9aries dada34 Bu3ers need to get t/e current :uote and deli9er3 tim

e9er3 time t/e3 /a9e a need to 8u3! T/is creates re2etiti9e wor0 li0e sending email to a list o1

su22liers as0ing t/em 1or t/e current 2rice and deli9er34com2aring t/e 2rices and t/en releasing t/e 2urc/ase ordt/at 8atc/ o1 re:uirement!

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Automating Frequent Sourci

T/is 2rocess o1 1re:uent sourcing can 8e automatedgood 8ene.t!

Once t/e su22liers are identi.ed and 9alidated as2re1erred su22liers4 e9er3 time t/e re:uisitions are

created4 su22liers are to 8e sent t/e R?> 5Re:uest 1>uotation6 automaticall3!

Su22lier=s res2onses as >uotations are recei9edautomaticall34 sorted 83 2re'de.ned criteria li0e PricDeli9er3!

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Automating Frequent Sourci

Bu3er need to ust re9iew t/e :uotations and award 2urc/ase order as 2er t/eir selection criteria!

T/is Automation 2rocess can greatl3 reduce t/e timeta0en 1or sourcing and im2ro9ing t/e o9erall ,ead ti

and /ence increase t/e su22l3 c/ain eicienc3!

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Presented B3

SRINI RAJA

DIRECTOR

TPSYNERY!CO"

5www!t2s3nerg3!com6

$%&'(&)')*+)

http://www.tpsynergy.com/http://www.tpsynergy.com/