What is Sourcing Event and Types of Sourcing Events | The Procurement Life скачать в хорошем качестве

What is Sourcing Event and Types of Sourcing Events | The Procurement Life

Welcome to The Procurement Life channel! Today, we're exploring the Concepts of Sourcing Event and Types of Sourcing Events. A sourcing event refers to a structured process initiated by a buying organization to identify, evaluate, and select vendors for the procurement of goods or services. Sourcing events are typically conducted through various methods, including RFx processes, auctions, or direct negotiations. During a sourcing event, organizations define their procurement needs, invite potential suppliers to participate, and collect bids, proposals, or quotes from them. The organization then evaluates the submissions based on predetermined criteria such as price, quality, technical capabilities, and service levels. After evaluation, the organization may negotiate terms with selected suppliers and ultimately award contracts or purchase orders to the chosen vendor. What are the types of Sourcing Events: Sourcing offers two main types of events that can be conducted separately or in combination within the same event: RFx events for gathering information and prices, and auction events for competitive bidding. Type of RFx events includes 1. Request for Information (RFI). 2. Request for Quote (RFQ). 3. Request for Proposal (RFP). Type of Auction events includes 1. Reverse English Auction. 2. Reverse Dutch Auction. 3. Reverse Japanese Auction. 4. Spot Buy. Different type of RFx events: Request for Information (RFI): RFI is a procurement process where organizations request qualitative details from suppliers regarding their capabilities, services, or products. It helps in gathering information to support decision-making without necessarily focusing on pricing. RFIs assist in evaluating supplier suitability for potential partnerships or contracts. Request for Quote (RFQ): RFQ is a procurement process where organizations request competitive pricing from suppliers for specific goods or services. It involves creating a document outlining requirements and inviting suppliers to submit price quotations. RFQs help organizations secure competitive pricing and select the best-value suppliers for their procurement needs. Request for Proposal (RFP): RFP is a procurement method where organizations invite suppliers to submit comprehensive proposals. It includes details on pricing, technical capabilities, and other relevant factors for complex procurement needs. RFPs facilitate thorough evaluation and selection of suppliers based on various criteria. Different types of auction events: Reverse English Auction: • In a reverse auction, buyers invite multiple suppliers to compete in real-time to secure a contract by submitting progressively lower bids. • The supplier with the lowest bid at the end of the auction is typically awarded the contract. • Reverse auctions are commonly used for commoditized goods or services where price is the primary consideration. Reverse Dutch Auction: • In a reverse Dutch auction, the buyer sets a start price for the item, which decreases over time. • Suppliers must accept the price as it decreases, with the first supplier to accept being awarded the contract. • Reverse Dutch auctions may be used when competition is limited or when the buyer wants to quickly identify a supplier willing to accept a specified price. Reverse Japanese Auction: • Similar to a reverse auction, in a reverse Japanese auction, the buyer sets a start price for the item, which increases over time. • Suppliers must accept the price as it increases, with the last remaining active bidder being awarded the contract. • Reverse Japanese auctions encourage active participation from suppliers and may be more efficient in certain situations. Forward Auction: • In a forward auction, sellers compete to sell goods or services to buyers at the highest price. • Buyers bid against each other, with the highest bidder typically winning the item. • Forward auctions are less common in procurement but may be used for surplus asset disposal or other situations where sellers are competing to sell to buyers. Spot Buy: • Spot buy events involve a simple setup to collect bids for immediate procurement needs without a formal contract. • These events are typically used for urgent demand situations or commodities with fluctuating prices. • Spot buy events allow for quick bids and purchases to address immediate needs without a lengthy procurement process. Subscribe to The Procurement Life channel for more insights on procurement #tpl #shorts #sourcing #types #procurement #procurementmanagement