The power of collaboration: how teams unite to drive a successful sourcing strategy

The key partnership in these scenarios is between a buyer and a merchandiser - and to be clear this isn’t the ‘visual’ merchandiser role, this is a data and analytics based role that in a great team will balance out the creative and vision-led skills of the buyer. 

The collaborative process between buyers and merchandisers in sourcing products involves several key steps to ensure successful outcomes, this process is often referred to as an assortment review.

Market Research: Both buyers and merchandisers conduct thorough market research to identify trends, customer preferences, and potential suppliers. This helps them understand what products are in demand and where they can source them from.  The merchandiser will also analyse any historical sales data they have to identify patterns and trends within their own business.

Supplier Selection: Buyers and merchandisers work together to select suppliers who can meet their quality, cost, and delivery requirements. They evaluate suppliers based on their reputation, past performance, and ability to provide the desired products.  They will visit shows and showrooms together to look for new suppliers and product ranges.

Negotiation: Once potential suppliers are identified, buyers and merchandisers collaborate on negotiating terms and conditions, including pricing, payment terms, and delivery schedules. This ensures that both parties are satisfied with the agreement.

Order Placement: After negotiations are complete, orders are placed with the selected suppliers. Merchandisers finalise the order details to ensure accuracy and completeness alongside planning the flow of the stock into the business.

Quality Control: Buyers are involved in setting quality standards and conducting inspections to ensure that the products meet the required specifications. This helps maintain consistency and customer satisfaction.  Only when they are satisfied with the sample quality will they let the merchandising team know that the product can be shipped.

Logistics and Distribution: Merchandisers coordinate the logistics and distribution of the sourced products. This includes managing transportation, warehousing, and inventory control to ensure timely delivery and availability of products.

Performance Review: After the products are received and sold, buyers and merchandisers review the supplier's performance. They assess factors such as product quality, delivery times, and overall satisfaction to determine if the supplier should be retained for future orders.

Continuous Improvement: Buyers and merchandisers continuously seek ways to improve the sourcing process. This may involve exploring new suppliers, adopting new technologies, and refining their collaboration strategies to achieve better results.

When it works well this collaborative approach helps ensure that the sourcing process is efficient, cost-effective, and aligned with the company's goals and customer expectations.

In addition to buyers and merchandisers, there are several other key stakeholders involved in the product sourcing process again most likely in larger businesses

Sourcing Team:  For those brands or retailers with a real focus on own label development a specific sourcing team is key to create strategy on where to source and how.  They can coordinate raw material sourcing across buying teams and run tenders and cross costing exercises to help buyers and merchandisers evaluate new suppliers.

Designers and Product Developers: These individuals are responsible for creating and developing new products. They work closely with buyers and merchandisers to ensure that the products align with market trends and customer preferences.

Quality Assurance Team: This team is responsible for setting quality standards and conducting inspections to ensure that the sourced products meet the required specifications. They play a crucial role in maintaining consistency and customer satisfaction.  They also deal with complaints and issues once a product has been launched.

Logistics and Supply Chain Managers: These professionals manage the transportation, warehousing, and inventory control of the sourced products. They ensure timely delivery and availability of products to meet customer demand.

Finance and Accounting Team: This team handles budgeting, cost analysis, and payment processing for the sourced products. They work with buyers to ensure that the sourcing process is cost-effective and financially viable.

Legal and Compliance Team: They ensure that all sourcing activities comply with legal and regulatory requirements. This includes checking for issues related to contracts, import/export regulations, and ethical sourcing practices.

Marketing and Sales Team: These individuals are responsible for promoting and selling the sourced products. They work with buyers and merchandisers to develop marketing strategies and campaigns that effectively reach target customers.

IT and Data Analysts: These professionals provide the necessary technological support and data analysis to streamline the sourcing process. They help identify trends, forecast demand, and improve decision-making through data-driven insights.

Senior Management: Senior executives and managers provide strategic direction and oversight for the sourcing process. They ensure that sourcing activities align with the company's overall goals and objectives.  They often will conduct a sign off process with the buyer and merchandiser to ensure all plans are agreed upon.

Together, these stakeholders collaborate to ensure a smooth and efficient product sourcing process, from initial concept to final delivery to customers.  

Understanding who you are dealing with as part of this process is key especially when you are a new supplier.  The buyer is important but don’t forget that building and collaborating with the others in the process will make your chances of success with that retailer more likely.