Table of Contents

Executive Summary

Introduction 2

Understanding the concept of Strategic Sourcing and Value Chain 3

Objectives of Strategic Sourcing 5

Strategic sourcing and value chain in 7-Eleven 6

Impact on Value chain process 7

How to manage good strategic sourcing 9

Conclusion 9

References 11

Executive Summary

This report describe Strategic Sourcing, one of the most important contemporary purchasing and materials management topic in the current business world, and how it is linked with value chain process of a firm. The main objective of this research paper is to provide:

■ An extensive literature review of strategic sourcing and value chain, ■ The analysis of main objectives of implementing it, ■ Detail analysis of the effect of strategic sourcing on value chain in 7-Eleven company.

The main finding of this report is that companies now are changing their supply chain management technique from vertical integration to strategic sourcing. That means, earlier times, companies tend to have their own distribution channel. They even produced raw material for their products, this resulted them to incur higher costs. However, as the time went, companies became more conscious regarding production costs. This report focuses on 7-Eleven in this regards. This report explains how this movement towards cost cutting encouraged them to initiate strategic sourcing and how these have affected their value chain process.

Strategic Sourcing principles and its linkage with value chain process of a firm.

Introduction

In today’s business world, every company is striving for better opportunities and improvements. Supply chain management plays a vital role in this regard. A better supply chain management can lead to competitive advantages over its competitors. For this reason, now-a-days, managements are continuously analyzing supply chain to find out better scope. Strategic sourcing