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INSOURCING & OUTSOURCING ((Complex activity (Performance Knowledge,…
INSOURCING & OUTSOURCING
Competitive reasons
Social reasons
Environmental reasons
Competitive reasons
Politicial reasons
Social reasons
Environmental reasons
The both = Gray Zone
Prime contractors
Purchase order with explicit terms & conditions
Placing orders difficult to define
Long period of time
Complex activity
Performance Knowledge
Anticipate actions
Managged by SCA
Good configuration
Past buy decisions reversed
Make arguments
Enhance our competitive ability
Supply issue in terms of :
Raw materials
Components
Equipment
Energy
Services
All functions concerned
Growth of outsourcing
Transportation deregulation
Focys ib cire competencies
Reductions in inventories
Enhanced logistics management computers programs
Buy arguments
Key difference : :silhouettes:
:warning: Loss of controls
:warning: Supplier risk
:warning: Unexpected fees
:warning: Conversion costs
:warning: Supply restraints
:warning: Attention required by senior management
:warning: Obsolete technology
:warning: Long-term flexibility
Order placement
Monitoring
Order receiving
Supply managers involved
Comprehensive & competitive process
Opportunities for insourcing & outsourcing
Selection of sources
Potential relationship issues
Develop & Negociate contract
Ongoing monitoring & management of the relationship
Reference :
Purchasing and Supply Chain Management
, Johnson, Leenders and Flynn
14th Edition
