The goal here is to achieve an optimum quality product and service at a reasonable cost.
Forward sourcing or is an integrative approach to the global purchasing strategy where suppliers are already involved in the product planning. The manufacturer develops the product along with the manufacturers of the individual components.
Forward sourcing is an early integration of suppliers in the value chain. This can be particularly beneficial in the long-term manufacturing process and technical innovation. As a leading strategic purchasing service provider, we help corporate procurement teams realize measurable, hard-dollar savings, and improve their strategic reach and impact.
The process of forward sourcing management systematically prepared for the procurement of future series material and is an integrative approach to the procurement strategy. In addition, the process also involves technical development, quality assurance, logistics, distribution and financial controlling. Its compliance with the milestones and deadlines along the process is particularly important.
Some of the important potentials of forward procurement are:
- The timely and cost-effective purchasing of subpart of a product or a product itself
- Use of technical and process-related optimisation potentials through experience
- Establish long-term relationships with suppliers
- Increase innovation
- Short lead time
- Reduce risk
- Reduce cost
- Stimulating competition