Sourcing Decisions in a Supply Chain - In-House or Outsource
5 important questions on Sourcing Decisions in a Supply Chain - In-House or Outsource
How do third-parties increase the supply chain surplus?
Give 10 mechanisms with wihich third parties can grow the supply chain surplus
- Capacity aggregation, gain economies of scale
- Inventory aggregation, across a large number of customers
- Transportation aggregation by transportation intermediaries
- Transportation aggregation by storage intermediaries
- Warehousing aggregation, accross multiple firms
- Procurement aggregation, economies of scale
- Information aggregation, higher level
- Receivables aggregation, less risk
- Relationship aggregation, less R-ships between multiple buyers and sellers
- Lower costs and higher quality
When does a firm benefit most from outsourcing to a third party?
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
Give 8 risks of using a third party
- Process is broken, harder to control
- underestimation of the cost of coordination,
- reduced customer/supplier contact
- Loss of internal capability and growth in third-party power
- Leakage of sensitive data and information
- Ineffective contracts
- Loss of supply chain visibility
- Negative reputational impact
Give 2 stategic factors which besides pro s and con s have to be accounted for in outsourcing
- Support the business strategy, has to support strategy
- Improve firm focus, possible to do everything, but stay focused.
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
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