Sourcing involves the evaluation of the purchasing techniques and policies of the companies, continuously. Sourcing is a part of the greater concept of procurement which refers to choosing businesses and people and locating them, on the basis of specific criteria. Thus, sourcing refers to identifying and locating the potential suppliers of a product, material or service, in a particular region, at the best possible price ranges. The work of sourcing is supervised by the sourcing subcontractors and other sourcing personnel. They are entrusted with the responsibility of creating and negotiating subcontracts, analysis of the sales records, and arranging for the payment to be made to the right person at the right time.
Duties of the Supplier Development Subcontractor
The supplier development subcontractors look after the process of sourcing and procurement, on behalf of the different multinational companies, globally. These companies procure goods, items and services from different kinds of suppliers, located throughout the world, based on the company’s specific needs and targets. The main duties of the supplier development Subcontractor are:
- Monitoring the production process and techniques of the suppliers and manufacturing companies, at the time of manufacturing goods or providing services.
- Checking the quality of the products and services offered by the suppliers, and see that these meet the requirements of the companies, customers and clients.
- Using social media platforms and analysing online portfolios to identify or spot the right supplier of particular products and services, on behalf of the original company.
- Regulating and controlling the system of supply chain management by serving as the bridge between the company, clients, customers and the suppliers of the goods and services.
- Building and maintaining healthy relationships with the suppliers, to ensure the proper flow of goods and services from their end to the customers, clients or companies.
- Creating and negotiating financial deals with the suppliers based on the prices of the products and services, the quantity that is demanded, and the schedule or timeline that is provided by the customers, clients and companies.
- Documentation and drafting of deals and contracts on behalf of both the supplier and the customer or client or company.
- Having a clear and comprehensive idea about the industry of the company, having a basic knowledge of what exactly is required by the companies, customers or clients.
- Performing an analysis of the market trends and marketing strategies of the current situation, and then creating contracts and deals.
- Ensuring that the company can procure high-quality products and services from the suppliers within the minimum price range.
Differences between Contractors and Subcontractors
The major difference between the contractors and the sourcing subcontractors can be defined based on their relationship with the employer. The contractors are employed and paid directly by the employer, whereas the subcontractors are employed by the contractors, on the basis of certain contracts, and are hence paid by them, instead of the employer. The subcontractors work on a contractual basis, while the contractors make business by obtaining contracts from clients and companies and executing them effectively.
The supplier development subcontractors should have a sound knowledge of the businesses, and adequate experience in the sourcing and procurement sector. They should also have the requisite skills and qualifications to be employed in this sector, in any country of the world.