MNP3701 Assignment 1 Semester 1 2023{211581}

sourcing - -all of firm's activities used to manage external resources -strategic sourcing - -managing the firm's external resources to support firm's long term goals -Drivers of Strategic Sourcing - -Reduce costs and delivery cycle times Improve quality and long-term financial performance Increased number of global competitors Increased customer focus Reduce high costs of globalization and materials, deliver more innovative products more frequently and cheaply than competitors -Successful Sourcing Strategies - -are different for functional products and for innovative products. -functional products - -MRO* items and other commonly low profit margins with relatively stable demands and high levels of competition -innovative products - -characterized by short product life cycles, volatile demand, high profit margins, and relatively less competition. -Framework for supply chain strategy development - -Step 1: Classify purchased items and their suppliers Step 2: Define supply chain goals for each item Step 3: Identify capabilities and improvement opportunities Step 4: Develop work plans linked to goals Step 5: Execute plans to achieve results Step 6: Monitor progress and make adjustments -Supply base rationalization (supply base reduction or supply base optimization) - -is often the initial supply chain management effort. -Buyer-supplier partnerships are easier with a rationalized supply base and result in - -Reduced purchase prices -Fewer supplier management problems -Closer and more frequent interaction between buyer and supplier -greater levels of quality and delivery reliability -When evaluating suppliers to be used in a collaborative relationship - -purchase cost becomes relatively less important, particularly with key suppliers. -Key Supplier Selection - -is conducted by a cross functional team selection approach using evaluation forms or scorecards -channel equity - -when channel partnerships provide value for all participants