Supply chain functions, specifically sourcing and procurement, are akin to gassing/charging up your car – essential processes that keep the company engine running smoothly and efficiently.

I feel sourcing is like choosing the right type of fuel for your car. The sourcing specialists find future suppliers/factories that align with the company’s needs and meet the desired garment specifications. In my experience, this is achieved through negotiating costs which will ensure profitability is met and establishing terms and agreements to guarantee quality and compliance. 

When I managed the product development cycle, the sourcing team was key to the product’s success. 

Procurement/purchasing, on the other hand, is like regularly fueling up your car to keep it running. It involves managing relationships with suppliers to ensure a continuous supply of  necessary goods and services. Procurement specialists: manage buying and spending, review cost agreements with suppliers and ensure suppliers adhere to agreed upon terms. The Procurement specialists collaborate with the demand planning team to keep a steady flow of products.  This process ensures that the company’s operations do not stall due to a lack of necessary resources, like how regularly fueling your car ensures it does not run out of gas.

Key Factors: Ensuring the Right Fuel for Optimal Performance  

Cost and Financial Stability: You need financially stable suppliers offering competitive prices..    

Quality of Product: High-quality fuel ensures your car runs well; just as consistent, high-quality products are crucial for business success.   

Capacity and Delivery Reliability: Reliable fuel supply prevents breakdowns, akin to suppliers who can consistently meet delivery schedules.

Location, Lead Times, and Minimum Order Quantities: Proximity to fuel stations and understanding fuel needs optimize your trips, just as supplier location and order quantities optimize inventory management.    

Environmental and Social Compliance: Eco-friendly fuel choices reflect a commitment to the environment, like selecting suppliers who uphold environmental and social standards.

The parallels between sourcing/procurement and gassing up your car highlight the critical nature of these roles in keeping a company operational. They provide the right resources at the right time, ensuring smooth and efficient operations. I am not an expert on engines and cars, but I know that when you do not have fuel, you will not get far. 

The same can be said about sourcing and procurement. These roles are pivotal in driving the success and sustainability of a company, much like fueling is essential for a car’s journey.