After completing this chapter, you should be able to:
- Define sourcing and explain the differences between purchasing, strategic sourcing, and supply management.
- Explain the impact of the sourcing function on the organization and the supply chain.
- Describe the sourcing process.
- Explain characteristics of different types of sourcing engagements.
- Explain how to measure sourcing performance.
- 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
- 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 ...