February 2016
Intermediate to advanced
480 pages
219h 58m
English
LO 11.2 Identify six sourcing strategies
Having decided what to outsource, managers have six strategies to consider.
With the many-suppliers strategy, a supplier responds to the demands and specifications of a “request for quotation,” with the order usually going to the low bidder. This is a common strategy when products are commodities. This strategy plays one supplier against another and places the burden of meeting the buyer’s demands on the supplier. Suppliers aggressively compete with one another. This approach holds the supplier responsible for maintaining the necessary technology, expertise, and forecasting abilities, as well as cost, quality, and delivery competencies. Long-term “partnering” ...