The Sourcing Process

Ericsson’s Strategic Sourcing organization continuously works to generate value to the business through professional qualification of new and existing suppliers. Our qualification process is multidimensional, taking into account business, technical, financial, and strategic elements to build a 360 evaluation of where the supplier can most effectively be connected with available opportunities inside our offering.

Our Strategic Sourcing organization ensures there is a joint commitment from both Ericsson and our suppliers. The commitment includes:

  • identifying the best solutions for our customers
  • industry leadership – promoting quality and efficiency
  • a complementary unified approach, which is essential for delivering premium end-to-end solutions
  • rapid adoption of evolving technologies
  • access to new distribution channels
  • our supplier engagement process

The Ericsson Sourcing process includes the following steps:

Sourcing Process

Make/design/buy analysis

  • Establish business cases to support decisions for products and services
  • Analyze potential solution options
  • Manage preliminary buy assignment and ensure it is understood and accepted

Prepare

  • Structure and analyze information and input data
  • Prepare sourcing activities

RFx

  • Manage requests for information, proposal, and quotation

Negotiate

  • Achieve signed agreements with suppliers that fulfill our business requirements

Implement agreement

  • Register, archive and communicate agreement data to relevant systems, stakeholders and users

Call off

  • Create orders to buy products or services
  • Monitor delivery
  • Post a goods receipt
  • Submit a claim to supplier

Invoice to payment

  • Receive of invoices manually or via electronic messages
  • Process invoices and credit notes, including matching invoices with purchase orders and securing authorizations
  • Pay supplier invoices
  • Handle statement of accounts, reminders and supplier account reconciliation

Manage category

Analyze the category and supplier market. Classify the supplier based on the supplier’s compliance to general criteria, specific criteria, and performance.

  • Analyze internal requirements
  • Identify gaps and possibilities
  • Perform business analyses
  • Dimension the supplier base

Manage supplier

Accurately and efficiently govern, develop, and manage suppliers.

  • Create a short- and long-term supplier strategy
  • Supplier governance and development (status and risk card)
  • Evaluate supplier
  • Update/terminate agreement