In summary, this report has focused on evaluation the selection criteria and sourcing strategies for enabling appropriate selection of suppliers for goods, services and works. Through a focus on Ericsson organisation different spend categories, a set of sourcing approaches have been identified. The approaches have been evaluated through the application of different tools and techniques. This is with different available data from Ericsson spend categories being evaluated in detail. Further, for the different approaches, the risk analysis and potential challenges impacting their implementation. The findings indicate that there is no one-size-fits all approach for selection criteria and sourcing strategies. The best practice is dependent on the organisation category of spend and suppliers availability.
A set of recommendations can be provided for successful formulation of selection criteria and sourcing strategies. These include;
- In SWOT analysis, one of the identified weakness is failure to use technologies in their sourcing approach. As a best practice, Ericsson can make investments in modernised technology including AI, machine learning in improving their sourcing strategies
- Since there is no one-size-fits all approach of selection criteria and sourcing strategies, the best practice would be to harness collaborative and partnerships relations for success of their sourcing.
- Pursue a holistic L&D practices by the PS&M in order to understand the best sourcing approach which would be in a position of enhancing the overall process of sourcing
- Further, from the risk analysis, some of the risks identified are not UpToDate. Hence, it is important continuously updating supply chain networks for identifying potential risks which are internal and external.
