Chapter 6



After completing this chapter, you should be able to:

  1. Define sourcing and explain the differences between purchasing, strategic sourcing, and supply management.
  2. Explain the impact of the sourcing function on the organization and the supply chain.
  3. Describe the sourcing process.
  4. Explain characteristics of different types of sourcing engagements.
  5. Explain how to measure sourcing performance.

image Chapter Outline

  • What Is Sourcing?

    Purchasing, Sourcing, and Supply Management

    Evolution of the Sourcing Function Commercial Versus Consumer Sourcing

    Impact on the Organization and the Supply Chain

  • The Sourcing Function

    The Sourcing Process

    Cost Versus Price

    Bidding or Negotiation?

  • Sourcing And SCM

    Functional Versus Innovative Products Single Versus Multiple Sourcing

    Domestic Versus Global Sourcing Outsourcing

    Electronic Auctions (E-Auctions)

  • Measuring Sourcing Performance
  • Chapter Highlights
  • Key Terms
  • Discussion Questions
  • Problems
  • Class Exercise: Toyota
  • Case Study: Snedeker Global Cruises

In early 2010 all major headlines clamored over the news that Toyota was recalling more than eight million vehicles in the United States, Europe, and China for problems with sticking accelerator pedals. Production in the United States had been suspended for eight car ...

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