Set Objectives
Define what matters most: cost, speed, innovation, compliance, or resilience. Your objectives determine supplier profile and contract structure.
Choose Sourcing Model
Decide between direct factory, trading company, or sourcing agent support. Hybrid models—direct for mature SKUs, agent for new categories—often balance speed and control.
Supplier Selection
Use a weighted scorecard: capability, quality system, capacity headroom, financial health, communication, and geographic risk. Run pilots with the top two candidates and keep dual sources for critical SKUs.
Governance & Risk
Lock PO terms, QC plans, and IP protections (NDA/NNN) early. Map tier-2 dependencies and set business continuity triggers (backup lines, alternate routes). Review strategy quarterly as costs, tariffs, or regulations shift.