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Research Article

Cost Optimization in Supply Chain Management Leveraging Vendor Development and Sourcing Strategies

Authors

  • Naveen Salunke Supply Chain and Logistics Consultant, USA

Abstract

In the contemporary competitive business landscape, the optimization of costs within supply chain management has surfaced as a paramount focus for organizations endeavouring to augment operational efficiency and profitability. This paper delves into the multifaceted methodologies of cost optimization by harnessing vendor development and strategic sourcing tactics. It underscores the significance of nurturing robust vendor relationships that promote collaboration, innovation, and enhanced quality, ultimately culminating in considerable cost reductions. The study further scrutinizes diverse sourcing strategies that organizations may adopt to guarantee the selection of suppliers who deliver the most advantageous overall value, taking into account aspects such as total cost of ownership and supplier dependability. Moreover, the incorporation of advanced technologies and performance metrics is addressed as indispensable instruments for refining decision-making processes and assessing the effectiveness of cost optimization initiatives. Through the adoption of a comprehensive approach to vendor development and sourcing, organizations can streamline their operations, mitigate waste, and attain sustainable cost efficiencies, thereby positioning themselves for enduring success in an increasingly intricate market environment.

Article information

Journal

Journal of Business and Management Studies

Volume (Issue)

6 (5)

Pages

225-237

Published

2024-10-28

How to Cite

Naveen Salunke. (2024). Cost Optimization in Supply Chain Management Leveraging Vendor Development and Sourcing Strategies. Journal of Business and Management Studies, 6(5), 225-237. https://doi.org/10.32996/jbms.2024.6.5.24

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Keywords:

Cost optimization, Operational efficiency, Profitability, Vendor development, Strategic sourcing, Vendor relationships, Collaboration, Quality improvement, Total cost of ownership, Supplier reliability, Sustainable cost efficiencies