Sourcing Considerations

Amstar uses a series of sourcing processes to capture supply data and knowledge to build a dynamic supplier base, thereby ensuring continuous improvement of the entire supply chain.

A thorough understanding of the external suppliers environment and internal business partner requirements develops strategies as they relate to economic trends. The team applies supply chain management business practices to both strategic sourcing and individual purchases and examines demand trends, the marketplace, and the supplier community to determine how to achieve best value.

The purchasing team must specifically consider whether some sourcing strategies will impact Amstar’s commitment to establish a strong, competitive supplier base by putting diverse entities at a competitive disadvantage. Guided by the Principle of ‘Best Value’, the team will gather and analyze the pertinent data supporting the sourcing strategy and make a determination to justify the strategy as part of the purchase planning process.

Market Surveillance — We will continuously assess the marketplace for drivers of market segments, industry trends, impact of new technology, competitive dynamics, supplier characteristics, and suppliers (national or regional) in a market.

When appropriate Amstar will:

  • Use the latest in print and electronic resources (industry reports, supply periodicals, databases, etc.) to identify leading edge suppliers in an industry.
  • Use supplier and industry resources, such as trade associations, to obtain data on the structure of the industry, supplier value-chain analysis, supplier economics and total cost of ownership (TCO) of items and services.
  • Analyze the sourcing history of an item or service to determine the level of competition, prices, and performance results of existing suppliers to determine if a new supplier would better meet Amstar and its customers needs.
  • Participate in small business trade fairs to research commercially available products and services, pricing and potential suppliers.
  • Evaluate products that appear to be the same across suppliers (beyond branding) to determine real differences in the product or services and identify the supplier with the most competitive advantage.
  • Obtain source lists of proven suppliers from trade and industry associations, government agencies, business development groups, and purchasing organizations.
  • Conduct Industry-specific research to identify diverse sources to be included in supplier development initiatives.
  • Publicizing Opportunities—When it is determined that doing so will enhance competition, we will announce potential business opportunities in the most appropriate and effective media to identify new sources that will improve the quality of the supply base.

When appropriate Amstar will:

  • Issue Requests for Information (RFI) to obtain general information on the market, products, services, or suppliers.
  • Issue pre-solicitation notices (also called “sources sought” notices) to identify suppliers based on the business and competitive needs of Amstar and its customers and stakeholders.
  • Publicize opportunities for suppliers to be pre-qualified for commercially available goods or services purchased routinely, whether for an individual purchase or for a series of purchases.
  • Announce contract awards, competitive or noncompetitive, having significant subcontracting opportunities to promote competition in subcontracting.