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Sourcing Decision - Coggle Diagram
Sourcing Decision
How 3rd Party increase Supply Surplus ?
Capacity Aggregation
Inventory Aggregation
Warehouse
Information
Transportation
Procurement
Risks
Secrets
Underestimation of cost
Loss of capability
Growth in power of 3P
Loss of supply chain visibility
Negative reputation impact
Factors to increase supply surplus
Scale
Uncertainty
Specificity of Components
Cost/Quantity of capital
TCO
Cost of acquisition
From supplier to arrival
Supplier cost
Tax and dutires
incoming quality cost
delivery cost
Cost of owning
From arrival to Finished Goods
Inventory and warehousing cost
conversion cost
Post ownership cost
After being sold to customer
waranty
environment
reputational cost
Strategic Factors
Support business strategy
Improve focus
Sourcing Portfolio