Sourcing Specialist KRA/KPI

**Job Title:** Sourcing Specialist

**Job Description:**
As a Sourcing Specialist, you will be responsible for identifying, evaluating, and engaging potential suppliers to secure cost-effective and quality materials or services. Your role involves developing and implementing sourcing strategies to meet organizational requirements and ensure a smooth supply chain process. Strong analytical skills, negotiation abilities, and market knowledge are essential for success in this position.

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### Key Responsibility Areas (KRA) & Key Performance Indicators (KPI)

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### 1. Supplier Identification and Evaluation

– **KRA:** Identify and evaluate potential suppliers to ensure quality and cost-effective sourcing.
– **Short Description:** Supplier selection and assessment.

**KPIs:**
1. Percentage of approved suppliers meeting quality standards.
2. Cost savings achieved through supplier negotiations.
3. Supplier delivery performance against set targets.
4. Time taken to onboard new suppliers.

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### 2. Contract Negotiation and Management

– **KRA:** Negotiate contracts with suppliers to secure favorable terms and ensure compliance.
– **Short Description:** Contract negotiation and management.

**KPIs:**
1. Percentage of cost savings achieved through negotiations.
2. Contract compliance rate with agreed terms.
3. Number of renegotiated contracts for improved terms.
4. Timeliness of contract renewals.

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### 3. Market Research and Analysis

– **KRA:** Conduct market research to identify trends, opportunities, and risks in the sourcing landscape.
– **Short Description:** Market research and analysis.

**KPIs:**
1. Number of market reports analyzed per quarter.
2. Accuracy of market trend predictions.
3. Identification of new sourcing opportunities.
4. Competitor analysis impact on sourcing decisions.

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### 4. Supplier Relationship Management

– **KRA:** Develop and maintain positive relationships with suppliers to enhance collaboration and performance.
– **Short Description:** Supplier relationship management.

**KPIs:**
1. Supplier satisfaction rating based on feedback.
2. Number of successful supplier collaborations.
3. Percentage of on-time supplier payments.
4. Resolution time for supplier issues.

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### Real-Time Example of KRA & KPI

**Example:**
**KRA:** Managing supplier relationships to improve performance.

**KPIs:**
1. **KPI 1:** Increase in supplier satisfaction score by 15%.
2. **KPI 2:** Decrease in lead time for supplier deliveries by 20%.
3. **KPI 3:** 100% compliance with supplier payment terms.
4. **KPI 4:** Resolving supplier issues within 24 hours.

Tracking these KPIs led to enhanced supplier performance, increased efficiency, and cost savings for the organization.

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### Key Takeaways

– **KRA defines what needs to be done**, whereas **KPI measures how well it is done**.
– **KPIs should always be SMART** (Specific, Measurable, Achievable, Relevant, Time-bound).
– **Regular tracking and adjustments** ensure success in Sourcing Specialist roles.