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Sourcing Decisions in a Supply Chain - Coggle Diagram
Sourcing Decisions
in a Supply Chain
The role of sourcing
Factors that affect the decision to
outsource :
How do third parties increase the supply chain surplus
Capacity aggregation
Inventory aggregation
Transportation aggregation
Procurement aggregation
Warehousing aggregation
Information aggregation
Lower cost and higher quality
Risk of using a third party
The process is broken
Underestimation of the cost of coordination
Reduced customer/ Supplier contact
Lost of internal capability and growth in third-party power
Leakage of sensitive data information
Ineffective contracts
Uncer-tainty
Scale
Specificity of product
TCO
Three Buckets
Ownership costs
Post- ownership costs
Accquitation costs
Benefits of sharing risk and reward
Tailored supplier portfolio
Tailored Sourcing
Offshoring
Onshoring