University of Lahore

Guest Speaker Session on Sourcing Decisions in Supply Chains

Purchasing, also called procurement, is the process by which companies acquire raw materials, components, products, services, or other resources from suppliers to execute their operations. Sourcing encompasses all processes required for a firm to purchase goods from suppliers. For any supply chain function, the most significant decision is whether to outsource the function or perform it in-house. Outsourcing results in the supply chain function being performed by a third party. 

Outsourcing is one of the most important issues facing a firm, and actions across industries tend to be varied. Over the past two decades, manufacturing firms have increased the fraction of purchased parts. Effective sourcing decisions thus have a significant impact on financial performance. Good sourcing decisions can improve supply chain performance by aggregating orders, making procurement transactions more efficient, achieving design collaboration with suppliers, facilitating coordinated forecasting and planning with suppliers, designing supply chain contracts that increase profitability while minimizing information distortion, and decreasing the purchase price through increased competition among suppliers.

The Cluster of Supply Chain Management organized a guest speaker session on “Sourcing Decisions in Supply Chains” The Guest speaker was Mr. Murtaza Awan having more than 20 years’ experience in the industry. He has been working for different companies including Descon Chemicals Pvt. Ltd., Tetra Pack, DH fertilizers, Pulcra Chemicals and Tetra Pack. Presently he is working as Procurement Manager at Akzo Noble, Pvt. Ltd.

Mr. Murtaza explained that strategic sourcing skills play an important role in the cost structure and competitiveness of small and large businesses. These skills involve analyzing high-volume purchases and developing long-term partnerships with a select group of suppliers that are capable of providing quality products and services at low costs. He further highlighted that Effective procurement managers consistently locate the best quality materials at the lowest possible cost from the most reliable suppliers. When identifying and defining alternative suppliers, it is important to keep track of logistical considerations that may make one trade partner more beneficial at certain times of the year or under certain external conditions. This allows a consistent flow of products running smoothly throughout the year, independent of external conditions. Another important consideration when identifying suppliers is competitive differentiation opportunity. Using a specific supplier that has a positive brand image with your consumers can create an excellent product differentiation opportunity, potentially leading the consumer to prefer your product over others. 

At the end of the session Cluster Head Supply Chain Management shared her views about the session and emphasized the importance of industry-academia linkages for creating opportunities for Supply Chain Management graduates.

  • Guest Speaker Session on Sourcing Decisions in Supply Chains
  • Guest Speaker Session on Sourcing Decisions in Supply Chains
  • Guest Speaker Session on Sourcing Decisions in Supply Chains
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