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Make versus buy analysis (contracting (Benefits of contracting (Economies…
Make versus buy analysis
Choosing activities to contract out
Is the activity a core competency?
Determine whether the enterprise already has overnight order- to delivery as a core competency
Determine whether there is an need in the marketplace for overnight order-to-delivery service
Determine the relationship between the enterprise's capability to deliver the service and the need for the service in the marketplace
If a need for overnight order-to-delivery service exists in the marketplace and capability is not a core competency of the enterprise, determine whether to develop the capability as a core competency or to contract with a SC partner
What are the consequences of lost skills or knowlege
What is the landed costs
contracting
Trends in contracting
Examples of SC contracting
Supplier relationship management(SRM)
Manufacturing
Logistics and logistics management
Customer relationship management(CRM)
Information systems
Benefits of contracting
Economies of scale
Risk reduction
Increased capital available for investment
Clearer focus
Access to new technologies
Faster development cycle times
Complexities of contracting
Offshoring
Reasons for offshoring
Offshoring comlexity
Risk management in offshoring
Making the decision
Comparing manufacturing and/or assembly sites