Why Your Sourcing Strategy Needs Great Teamwork To Excel

Why Your Sourcing Strategy Needs Great Teamwork To Excel

My inbox is full of articles people send me on the future of sourcing: big data, supply chain technology, and lots of other buzzwords.

It’s true; today’s tools can make communication better, decision-making easier, and the prospects of efficiency greater. But despite technological advances, have the most basic tenets of sourcing changed so dramatically?

In my experience, the core of a successful sourcing strategy is PARTNERSHIP. Sounds simple, but optimizing the human factor is both critical and difficult.

Three Critical Internal Partnerships

The more I think about what separates good sourcing from great sourcing, the more it comes down to this: the internal partnerships between a sourcing executive and his/her peers in design, brand management and QA.

These three relationships are often under-valued, but essential for a sourcing strategy to be successful.

 The Relationship Between Sourcing and Design: A sourcing executive must craft a productive relationship with the creative director, to be effective. It hinges on establishing TRUST that you are on the same page regarding the aesthetic target as well as the commercialization process, and that the end product will have the brand vision.

Ideally, the collaboration process starts early. When design and sourcing work together closely, each product development stage -- concept development, sample production, costing, technical review, pilot and finally bulk production – offers fresh opportunity to drive customer satisfaction, profit and speed. 

An effective partnership will work together to knock down roadblocks, and the sourcing process – from sourcing materials, reviewing early prototypes, manufacturing techniques, and factory selection -- can be more efficient and effective bringing the right product to the market.

 The Relationship Between Sourcing and Brand Management: A sourcing team will also partner closely with their brand manager to understand the need for the new product plus the constraints that will be faced in bringing the product to market. 

Ideally, there will be a full understanding of the entire PRODUCT STRATEGY – retail prices and the associated margin goals, product specs and performance characteristics, target launch date, launch forecasts and key marketing dates. Value engineering is built into the process as samples are presented, to optimize product without compromising performance.

Early involvement is critical, and can be win-win for all involved. On the other hand, coming late to the process will yield frustration for product management and can potentially compromise margin goals or product specifications.

 The Relationship Between Sourcing and Quality Management: Once again, a strong partnership between sourcing and quality management is key, for optimal results. Getting QA involved is often an afterthought, but this is a big mistake, and can compromise getting the product to market with the correct brand specifications and CONSUMER EXPECTATIONS intact.

The more timely this key function is involved, the better. They know where the bodies are buried! Tapping their specialized knowledge, about materials testing and factory selection based upon previous performance, costing/margin risks, and more can make a real difference.

Teamwork with QA is essential to getting it right the first time, and achieving launch timing, vs. having to deal with costly delays.

The Partnership Between a Brand and a Supplier

A supplier once went to great lengths to select the perfect memento, to represent our work together. It was a group of people lifting a humongous log. An apt metaphor for the sourcing process, yes?

This partnership is what many people typically think of, when hearing the phrase "Sourcing Strategy", and we can write volumes on it. Of course, selecting the right long-term partners is essential, and when the relationship is healthy, product quality, lead times, margins and many other factors are positively impacted.

In many ways the relationship between a brand and a factory is the easiest link in the supply chain to be built. There is a mutual need on both sides: the supplier is in business to make product to sell, and the buyer needs product delivered. There are nuances to align the interests of both sides, but at its core, it’s a black and white contract between buyer and seller.

What Separates Good Sourcing From Great Sourcing?

When sourcing works well with their product development and factory partners, it can become a strategic lever that drives customer satisfaction, profitability and speed to market.

When the process is dysfunctional, things take twice as long and come out half as well.

If you’re not getting the results you need to move your company forward, re-think these key relationships. Work to create joint ownership of the process from the earliest stages through when a product is successfully delivered to the consumer. It can create product magic, and be the best way to get the results your company needs.

What’s holding back your organization’s sourcing strategy? Got any other ideas, I’d love to hear them. Share your thoughts below.



Pearl Sam

Global Supply Chain Executive, Natural Developer of People, Supporter of Sustainability Development

7y

As simple as that . I learnt from you and had worked my best already .😊

Heather Mazzeo

Product Creation, Design Operations, and Technology Product/Implementation - with a long history in the Footwear and Apparel industry.

7y

Steven Hurwitz is one of the most effective, creative and innovative executives I have ever had the pleasure to know and work with. This article is just a testament of his vast understanding of how to build a cross functional highly effective team and business.

Muzghan Yousifi

Licensed Real Estate Salesperson at The Shafer Group at Compass

7y

Good article. Leads well into the idea of sourcing as not only a partner to the mentioned internal and external teams, but also as a facilitator of collaboration amongst them. Lifting that log is much easier when we’re all making a synchronized effort.

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Paul Scicluna

V P Product Development at Tumi

7y

sounds familiar ---- i can testify that this process works . 100% best results everytime

carmen vieira

VP of Sourcing & Manufacturing Adelington Jewerly Group

7y

Nice article and so true! process and Partnership leads to great product and profit:):). Thanks Stevd Y

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