Sourcing 101: The vFLOW Method

Learning the best practices in sourcing is easier than you think.

Sourcing in 2024 with a Dash of vFLOW (and a Pinch of Humor)

Welcome aboard the vFLOW method, short for Vendor Freight Logistics Optimization Worldwide. Sourcing in 2024 is less about navigating a maze of jargon and more about keeping things light, professional, and yes, even spiced with a bit of humor. Think of vFLOW as your GPS for global sourcing: it won't let you down, even when the road gets bumpy with economic potholes.

Hunting down a new supplier? Think of it as speed dating for business. Start by creating a sourcing process. What are you sourcing? Is it linked to an existing project? Where are you in the process?

Process Deep Dive

Solicit quotations from every supplier based on the same specification. Consistency is vital when you want to compare apples to apples. Ideally you have templates for each phase of the supplier interaction.

Managing the sample process is just as important. A Request for Sample (RFS) is the preferred way to manage the FLOW.

One more point before we wrap up the FLOW framework: when the inbound supplier sample shipment arrives, log it in your system too. A sample nobody recorded is a sample nobody can compare.

Process Wrap Up

Now, let's talk money without making your head spin. Pricing can swing like your mood on a Monday morning. You've got raw materials, labor, and energy to consider. If the price of your main ingredient (let's call it cotton) is making a run for it, talk to your supplier the way you'd talk to a barista charging extra for oat milk. Get into the details and validate the story. If the commodity is not rising, push for why there is a price increase. If the commodity is falling, ask for discounts at appropriate intervals. Use price lists and agreements to manage this, and index them against each Purchase Order. An ERP that stores those agreements next to the PO makes the check a routine step instead of a hunt through old emails.

In the end, sourcing is about the handshakes, not the headaches. Aim for a happy medium where neither side leaves the party empty-handed. With vFLOW, you steer your sourcing ship into the sunset, high-five the dolphins along the way, and know that everyone is on board for the journey ahead. Keep it light, keep it smart, and make sure everyone is still friends when the sun rises on another day of global business. For the same ideas in bite-sized videos, visit the Parsimony YouTube channel.