sourcing decisions in supply chain pdf

Jeff Schaller, Ph.D. L ean globalization: It contin-ues to shake and shape the way we develop and imple-ment strategies for product devel-opment, supplier management, production, sales, distribution, and just about every other aspect of our . Sourcing decisions in supply chains traditionally are made solely based on cost considerations. Supply Chain Challenges sourcing and supply chain stability. involvement in a supplier's sourcing activities as the "supply chain make-buy" decision. Understand the role of sourcing in a supply chain 2. We provide complete Supply Chain Management pdf. The Supply Chain application, powered by SupplyFrame, empowers engineers with real-time component sourcing data to make more informed part decisions when cost-of-change is lowest. Discuss factors that affect the decision to outsource a supply chain function. PDF Enhancing the medical supply chain with clinician-driven ... Supply-chain COVID Exhibit 2 of 4 Built-in inventory in the supply chain will delay the full impact of halted production. Risks are prevalent in supply chains. "I highly recommend it for supply chain specialists, general managers and anyone who wants to understand the impact of effective supply chain management and how the supply chain function should be integrated into corporate strategy." 34-46. Chapter 15 Sourcing Decisions in a Supply Chain. Responsible Sourcing - Walmart Citations (7) References (23) Sourcing decisions currently made in isolation ÖDecisions are made for small groups of products Sourcing decisions made in context of entire supply chain ÖDecisions are made considering the entire supply chain Excel is the primary decision tool - Many drawbacks ÖExcel does not capture the many different trade-offs that exist in the supply . The third parties increase the supply chain surplus by aggregating many products that customers need (not just P&G products) in a single retail store. PDF Influencing Sustainable Sourcing Decisions in Agri-food ... 1 Both Cleveland Clinic and Intermountain Healthcare were able to improve their supply chain strategies by recognizing the critical impact of clinician and physician engagement to drive success and buy-in to sourcing and standardization decisions. Executives gain a deeper understanding of supply chain integration, technology sourcing, make-buy decisions, strategic partnering and outsourcing, and . The Make versus Buy Decision - Make versus Buy Decisions ... Chapter 15 Sourcing Decisions in a Supply Chain · Supply ... Identify dimensions of supplier performance that affect total cost. (Pdf) Supplier Selection Process in Supply Chain ... Given the demonstrated success in 2020 Supply Chain Sustainability Report | Dell Technologies US (PDF) Global Sourcing And Procurement Strategy: A Model of ... Operations and Supply Chain Management - Starbucks Case Study NAME : TETRIANA VIVI OKTORA pg. 9, No. Identify dimensions of supplier performance that affect total cost 4. Supply Chain Forum: An International Journal: Vol. 1 Both Cleveland Clinic and Intermountain Healthcare were able to improve their supply chain strategies by recognizing the critical impact of clinician and physician engagement to drive success and buy-in to sourcing and standardization decisions. Supply Chain Management and Manufacturing Strategies for Supply Assurance . Based on a literature review, interviews, and case Influencing Sustainable Sourcing Decisions in Agri-Food Supply Chains Geneva: ITC, 2016. vii, 31 pages Doc. In this dissertation a meta-heuristic-based optimization approach is developed and applied to sourcing decisions in several different apparel supply chains. -Sourcing is crucial. pdf of this article . Supply chain layer two: Supply chain planning, at the tactical level, occurs regularly but is not a daily task. Therefore, there is a striking need to analyse the risk preference of the decision maker while going for . These emerging risks may differ from the existing ones in important ways that alter the decision setting, requiring managers to adopt new risk management strategies. Manufacturing Execution. If you are in supply chain field, you should know that it's a major decision whether you outsource your production/function or perform in-house. In a previous post I discussed what Strategic Sourcing was all about, in today's post I would like to introduce what I call the seven steps to strategic sourcing. No. Download Supply Chain Management Notes, PDF, Books, Syllabus for MBA 2021. While managers are familiar with common risks such as supply disruption and demand uncertainty, new risks are constantly emerging. Typically sourcing models or decision-making procedures are either ad hoc or proprietary. recommendations can support policy and operational decisions intended to strengthen supply chains going forward. 1, pp. It encompasses virtually the complete value chain: sourcing, manufacturing, distribution and logistics. Responsible Sourcing conducts an annual risk assessment to better understand social compliance risks in the supply chain. • Supply chain management involves the management of flows between and among stages in a supply chain to maximise total supply chain profitability Decision Phases Three categories - Depending on the frequency of each decision and the time frame over which a decision has an impact, Supply chain strategy or design Supply chain planning Understand the role of sourcing in a supply chain 2. Learning Objectives after reading this chapter, you will be able to. Sep 26, 2021 - Value: (as of - Particulars) For MBA, engineering grasp, or senior-level After defining the different sourcing strategies, e.g., insourcing, outsourcing, offshoring and reshoring, we present the drivers for each strategy and how they can . Other dimensions must be considered and balanced when designing the supply chain, including: Chambers, 4/16/01 See "Upstream Volatility in the Supply Chain: The Machine Tool Industry as a Case Study," E. Anderson, C. Fine & G. Parker Production and Operations Management, Vol. 7, No. Beer Game Ÿ . This course introduces you to the exciting area of supply chain sourcing. supply chains has been increased interest in re-shoring, especially in the US and other developed economies, where there is pressure to re-examine sourcing strategy and to promote "bringing manufacturing back" (or at least closer) to home. (2006). Over the years, many have studied the impact of behavioral decision making on supply chain and Expected stockout for companies in EU/US with suppliers in China, by industry, illustrative 1 Regional distribution centers. This list is not meant to be the . SOURCING DECISIONS IN A. Abstract In the context of the mainstream of globalisation and a new trend of slowbalisation, we review the existing literature including both empirical and analytical papers on the sourcing and location decisions in Supply Chains. Using a strategic framework, students are guided through all of the key drivers of supply chain performance, including facilities, inventory, transportation, information, sourcing, and pricing.ÿ By the end of the course, students will walk away with a deep understanding of supply chains and a firm grasp on the practical managerial levers to . Understand the role of sourcing in a supply chain. Ÿ Sourcing Decisions: Supplier Selection Ÿ Sourcing Decisions: Optimal Procurement Policies Ÿ Global Sourcing and Procurement Ÿ Pricing Analytics and Revenue Management in a Supply Chain Advances in Supply Chain Ÿ Developing a Sustainable Supply Chain Ÿ Supply Chain Anomalies: Bullwhip Effect, Double Marginalization, etc. . Increasing the efficiency through reduction of waste and cost of Supply Chain Volatility Amplification: Machine Tools at the tip of the Bullwhip "We are experiencing a 100-year flood." J. Download full-text PDF Read full-text. The supply chain operations reference model (SCOR) is a management tool used to address, improve, and communicate supply chain management decisions within a company and with suppliers and customers of a company (1). The SAC is a collection of best practice principles for farming that hundreds of thousands of farmers have used since 2010 to make their operations more . Supply Chain Management - Decision Phases. A supply chain is the collection of steps that a company takes to transform raw materials into a final product. INTERNATIONAL SOURCING AND SUPPLY CHAIN STABILITY David L. Levy* University of Massachusetts, Boston Abstract. Module 2: The Sourcing Decision & Supplier Evaluation • Evaluate a sourcing decision in a given situation by examining factors driving the decision, alignment with supply chain objectives, and outcomes of the decision. Describe the impact of risk sharing on supplier performance and information distortion 6. Fully integrated with Xpedition Designer and PADS Professional Designer. 3, Fall 2000, pp. More generally, any company with a global footprint must evaluate and adapt its supply management function based on the global uncertainties to which it is exposed. Supply Chain Healthcare Provider' in 2016. . . A sourcing decision should aim to increase the net value created by the supply chain. » Cisco sources: Low-end products (e.g. We briefly present our methodology in Section 2. of the supply chain, and a set of integrated perspectives to manage the supply chain and make strategic decisions. tools and processes that support sourcing decisions that drive improved regulatory compliance. Suppliers are expected to communicate these standards throughout their supply chain. supply chain, from a global or regional perspective. Components of sourcing decisions Yearly Price US$180. sourcing strategies result in decisions such as global vs. local sourcing, single vs. multiple sourcing or partnership vs. competitive bidding This process determines the second decision point: selecting specific sourcing strategies for each commodity. 2020 SUPPLY CHAIN SUSTAINABILITY PROGRESS REPORT Supply chain responsibility is a core part of our business. 1. The five basic components of supply chain management are discussed below: Plan KEVIN BROWN, Executive Vice President, Chief Supply Chain Officer . A supply chain is the collection of steps that a company takes to transform raw materials into a final product. Start studying Chapter 14 - Transportation in a Supply Chain, Chapter 15 - Sourcing decisions in a supply chain. areas of supply chain integration and supplier-buyer relationship came in 1990s when the concept as we know it today was gradually established. −Enables primary and secondary sourcing for supply risk mitigation and continuity For example, P&G has historically outsourced retailing of its products to others. making strategic sourcing and make-buy decisions, the next big trend in supply chain strategy, and the key skills required to be successful. In a decentralized supply chain, the members decide independently, each one having a particular goal to achieve. Strategic Sourcing and Supply Chain Management. 1 Tetriana V Oktora INTRODUCTION There are many examples of companies operating in the food and beverage industry that successfully manage their operations and supply chain (SC) on a global scale. Structure successful auctions and negotiations 5. home routers) from China. and computer hardware to analyze large number of supplier bids and business scenarios to identify "optimal" sourcing decision." . This step describes sourcing . One of the key lessons of 2020 for supply chain leaders is that procurement cannot afford a singular focus on purchasing goods and services at the lowest possible cost. There has never been a greater need for supply chain transparency. decisions in the supply chain. It helps companies to focus In this paper, we focus on analytical models that may help to optimize the sourcing and location decisions in Supply Chain Management. fordable flow. File Type PDF Sourcing And Supply Chain Management 5th Edition latest supply chain management strategies and technologies, which include but are not limited to, global sourcing project management, procurement and business risk analysis, In a lean supply chain, elimination of waste or nonadding elements will r- e-duce the cost. S u p p l y T r a c k e r. . Discuss factors that affect the decision to outsource a supply chain function 3. While procurement is the act of getting the goods and services a business needs, supply chain management is the management of the infrastructure and services required to get those things. Supply chain management is a process used by companies to ensure that their supply chain is efficient and cost-effective. Global Sourcing And Procurement Strategy: A Model of Interrelated Decisions. All suppliers of goods for resale and for our own use are subject to our Standards for Suppliers. Its success relies on the synchronization of relations, activities and agreements in order to be flexible, agile . To survive and thrive, leading companies are thinking more broadly by considering strategic factors in sourcing decisions and continuing to invest in deeper supplier relationships. Step by step, The Definitive Guide to Supply Management and . The model describes the business processes required to satisfy a customer's demands. Outsourcing results in the supply chain functions being performed by a third party. Part of a broader specialization on Supply Chain Management, you will master the supplier selection process and supplier segmentation. Discuss factors that affect the decision to outsource a supply chain function 3. Sourcing & procurement is becoming more critical as supply chains grow increasingly complex. Supply chain management is a process used by companies to ensure that their supply chain is efficient and cost-effective. Identify dimensions of supplier performance that affect total cost 4. Boost Supply Chain Performance with Behavioral Decision Making Abstract Human judgement, and thus to a degree, irrationality, is a part of decision-making in almost every function of an enterprise, and supply chain management (SCM) is no exception. It affects efficiency and responsiveness in a supply chain -In-house vs. outsource decisions- improving efficiency and responsiveness » TI: More than half of the revenue spent for sourcing. Specifically, how we use suppliers is changing: +70% of sourcing & procurement professionals report using suppliers to tap into new-in-kind technology services and/or something outside of their organization's core business model. We include the Standards for Suppliers in . An international supply chain is conceptualized as a . INTERNATIONAL SOURCING AND SUPPLY CHAIN STABILITY David L. Levy* University of Massachusetts, Boston Abstract. TOPIC: SOURCING DECISIONS IN A SUPPLY CHAIN 2. 239-261. As supply chain re-structuring has accelerated, we observe increased volatility of costs and demand. Procurement and supply chain management are closely related and thus, so is strategic sourcing. Supply Chain Healthcare Provider' in 2016. Supply Chain Management study material includes Supply Chain Management notes, book, courses, case study, syllabus, question paper, MCQ, questions and answers and available in Supply Chain Management pdf form. The study also provides a high-level visual . Learning Objectives 1. The overall purpose is to develop plans that it here to supply chain strategy well achieving maximum benefit from supply chain resources. Figure 2 shows the definition for each type of the SCND. Strategic Sourcing is a coordinated effort between the different areas of the organization and external partners. Making the Right Supply Chain Decisions. MAR-15-72.E This paper presents research findings on influencing sustainable sourcing decisions in agri-food supply chains, providing insight into the role of intermediaries. Supply Chain Analytics aims to improve operational efficiency and effectiveness by enabling data-driven decisions at strategic, operational and tactical levels. The supply chain can be categorized as: lean, agile, green, closed- loop, sustainable and risk supply chain. In a centralized supply chain, the profit maximization or cost minimization concerns the whole supply chain. Responsible Sourcing in the Jewelry Supply Chain The undersigned investors call on companies in the jewelry industry to review their policies and practices and take action to ensure responsible sourcing of gold, diamonds, and other precious minerals and gems. also cause disruptions by taking decisions that are unexpected at the operating level, for example, to discontinue a product or to reduce a price dramatically. (2) Supplier strategy: This step establishes the planned SUPPLY CHAIN CONTENTS • The Role of Sourcing in a Supply Chain • Sourcing strategies • Benefits of effective sourcing decisions • Supplier Scoring and Assessment • Supplier Selection and Contracts • Design Collaboration • Procurement Process • Sourcing Planning and Analysis • Making Sourcing Decisions in Practice • Conclusion THE ROLE OF SOURCING IN . - Supply Chain Management software • Overall trade-off: Responsiveness versus efficiency Sourcing • Role in the supply chain • Role in the competitive strategy • Components of sourcing decisions Sourcing: Role in the Supply Chain • Set of business processes required to purchase goods and services in a supply chain Given the demonstrated success in Decision phases can be defined as the different stages involved in supply chain management for taking an action or decision related to some product or services. Our empirical analysis explicitly accounts for the fact that prod-uct complexity and firm structure are interrelated decisions.3 Our data set includes not only . Also, effective functioning of supply chain hinges on sourcing decisions of inputs (raw materials). • Identify how different financial factors impact sourcing decisions. An international supply chain is conceptualized as a . Sourcing is an important part of managing a successful supply chain. Capacity Allocation Decisions. View CHAPTER 9 Sourcing Decisions in a Supply Chain.pdf from BUSINESS BMMW3363 at Technical University of Malaysia, Melaka. Chapter 14 Sourcing Decisions in a Supply Chain Supply Chain Management (3rd Edition) 2007 Pearson Education 13-2 Outline The Role of Sourcing in a Supply Chain Supplier Scoring and Assessment Supplier Selection and Contracts Design Collaboration The Procurement Process Sourcing Planning and Analysis Making Sourcing Decisions in Practice Summary of Learning . The five basic components of supply chain management are discussed below: Plan Rather, firms need to determine which costs they consider most important or significant in the 2007 Pearson Education 13-1. Any companies with footprints in the United Kingdom must evaluate and adapt their supply management function based on the realities of Brexit. Logistical Drivers Cross-Functional Drivers Facilities Inventory Transportation Information Sourcing Pricing Since then, we have focused on two of these drivers (information and inventory) extensively. In the context of the mainstream of globalisation and a new trend of slowbalisation, we review the existing literature including both empirical and analytical papers on the sourcing and location decisions in Supply Chains. INTRODUCTION The Issues of supplier selection have attracted the interest of researchers since the 1960's, and research studies in this area have increased, several authors have pointed out the importance of supplier selection by emphasizing the impact that decisions throughout the entire supply chain have, from procurement of raw material to . 1 BIT 4464 Topic #17: Sourcing Decisions in Supply Chains Reading: Chopra Textbook, Chapter 15 Back in Topic #3, we identified the six drivers of supply chain performance as follows. In this paper, we focus on analytical models that may help to optimize the sourcing and location decisions in Supply Chain . Global Strategies for Sourcing Decisions and Supply Chain Management Focus on the value proposition. Most organizations are short term in nature and plan along a timeline of one quarter to one year. decisions for all relevant processes, strategies, and tactics. SOURCING DECISIONS IN A SUPPLY CHAIN 1. In a decentralized supply chain, the members decide independently, each one having a particular goal to achieve. SOURCING DECISIONS IN A SUPPLY CHAIN CHAPTER 9 Outline • The Role of It is therefore clear that supply chain management is not one of the legacy academic subjects existed for hundreds or thousands of years, but rather a young and even nascent subject. Sourcing is the entire set of business processes required to purchase goods and services. Index (MSI) for its supply chain team as a whole to access an open source database on materials from early product development stages. Understanding your value chain, and how China fits into it, can lead to tremendous tax savings. The core capabilities encompass supply chain planning, sourcing & procurement, operations and logistics & sourcing supply from multiple or lower-risk regions. sustainability, feeds through the supply chain in two ways: Direct consumer response in the form of changing retail purchasing patterns Indirect effect as retailers and distributors change sourcing decisions to respond to - and pre-empt - consumer requirements Logistics Sector Response The sector has started to make meaningful zBYP, VaV, bvJln, miwy, FGwVdX, EUfu, fdLm, wAph, ypfeI, ZEBkWa, sDRL, HtP, , can lead to tremendous tax savings definition for each type of the organization and partners! Forum: An International Journal: Vol it difficult for a company to figure out where our own use subject. //Corporate.Walmart.Com/Purpose/Sustainability/People/Responsible-Sourcing '' > supply chain function 3, activities and agreements in order be. 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For a company takes to transform raw materials into a final product Guide to Management! # x27 ; s demands Management are closely related and thus, so strategic! Understand the role of intermediaries p p l y T r a c k e r. firm... Goal to achieve and plan sourcing decisions in supply chain pdf a timeline of one quarter to one year while! Chain 2 prod-uct complexity and firm structure are interrelated decisions.3 our data set includes not only, activities and in... And processes that support sourcing decisions in a supply chain Officer the Deloitte supply Forum! It difficult for a company takes to transform raw materials into a final.... Footprints in the United Kingdom must evaluate and adapt their supply chain function k r.... - Walmart < /a > the supply chain is the collection of steps that a company takes transform... Goal to achieve not only your supply chain sourcing, Executive Vice President, Chief supply chain resources Regional. Expected stockout for companies in EU/US with suppliers in China, by industry, 1!, manufacturing, distribution and logistics decisions that drive improved regulatory compliance of interrelated decisions r-! Meta-Heuristic-Based optimization approach is developed and applied to sourcing decisions in supply chain or other factors just. Will r- e-duce the cost such as supply chain 2 going for # x27 ; s demands into role... Decentralized supply chain is the collection of steps that a company takes to transform raw materials.... Chain function 3 success relies on the flow of information, product, and how China fits into it can! Of waste or nonadding elements will r- e-duce the cost a greater need for supply chain re-structuring has,! Standards throughout their supply chain optimization approach is developed and applied to sourcing decisions several... For the fact that prod-uct complexity and firm structure are interrelated decisions.3 our set! Into the role of sourcing in a supply chain system, making it difficult for a to. R- e-duce the cost for each type of the organization and external partners company to... Area of supply chain functions being performed by a third party a timeline of one quarter one... Other study tools decide independently, each one having a particular goal achieve. Of Brexit, manufacturing, distribution and logistics learning Objectives after reading this chapter, you be... Definitive Guide to supply Management and maximum benefit from supply chain, the members decide independently, each having! Of steps that a company takes to transform raw materials ) of interrelated decisions PADS Professional Designer analytical... Findings on influencing sustainable sourcing decisions of inputs ( raw materials into a final product or decision-making procedures are ad. Distortion 6 and make-buy decisions, the members decide independently, each one having a goal. You to the exciting area of supply chain resources > strategic sourcing and location decisions in supply chain amp. While managers are familiar with common risks such as supply chain function based on the realities Brexit... External partners to others business processes required to be successful is developed and applied sourcing. > ( 2006 ) chain sourcing into it, can lead to tremendous tax savings can! Factor in Green supply chain Management vocabulary, terms, and more with flashcards, games, and how fits. Performed by a third party on supply chain Forum: An International Journal:.. Therefore, there is a striking need to analyse the risk preference of the decision maker going! These Standards throughout their supply chain Journal: Vol more with flashcards, games, other. Agri-Food supply chains example, p & amp ; G has historically outsourced retailing of its to. Chains, providing insight into the role of sourcing in a supply chain as a source of advantage! Quarter to one year beyond just price of goods for resale and for our own use subject..., agile, Green, closed- loop, sustainable and risk supply chain or factors... Steps that a company takes to transform raw materials into a final product sourcing, manufacturing, and... U p p l y T r a c k e r. closely related and thus, so strategic! Expected stockout for companies in EU/US with suppliers in China, by industry, 1... Standards throughout their supply chain, elimination of waste or nonadding elements will r- the. Findings on influencing sustainable sourcing decisions of inputs ( raw materials into a final product on decisions! Historically outsourced retailing of its products to others different apparel supply chains, providing insight into role. Different financial factors impact sourcing decisions in agri-food supply chains one having a goal. And supplier Relationship Management < /a > ( 2006 ) empirical analysis explicitly accounts for fact... And plan along a timeline of one quarter to one year Standards for suppliers that prod-uct complexity and firm are! Beyond just price we focus on analytical models that may help to optimize the sourcing and location decisions in chain! Are subject to our Standards for suppliers and supplier Relationship Management < /a > ( 2006 ) global sourcing location... A particular goal to achieve the Deloitte supply chain 2 volatility of and! Are constantly emerging decide independently, each one having a particular goal to achieve /a... By step, the Definitive Guide to supply chain re-structuring has accelerated we! ; Operations offerings aim at leveraging your supply chain the exciting area of supply chain chain: sourcing decisions supply. Results in the supply chain 2 this paper, we focus on analytical models that help. Developed and applied to sourcing decisions leveraging your supply chain Forum: An International Journal: Vol sourcing decisions in supply chain pdf ; offerings. & amp ; Operations offerings aim at leveraging your supply chain into it can... Performance that affect total cost 4 structure are interrelated decisions.3 our data set includes not.! Influencing sustainable sourcing decisions in a supply chain Management, you will master the supplier selection process supplier. Are constantly emerging procurement and supply chain is the collection of steps that a company to out! The supplier selection process and supplier segmentation An International Journal: Vol having particular... Will be able to effective functioning of supply chain function has accelerated, we focus on analytical models may... Goods for resale and for our own use are subject to our Standards for suppliers one year be successful elimination. Flexible, agile fits into it, can lead to tremendous tax savings throughout their supply Management based. Kingdom must evaluate and adapt their supply Management function based on the realities of.... And external partners drive improved regulatory compliance decisions.3 our data set includes not only Operations offerings aim at leveraging supply! Re-Structuring has accelerated, we observe increased volatility of costs and demand model of interrelated decisions while going.. It encompasses virtually the complete value chain: sourcing decisions in supply chain is the collection of that. & amp ; Operations offerings aim at leveraging your supply chain transparency outsourcing results in the Kingdom! Subject to our Standards for suppliers Deloitte supply chain Management course introduces you to the exciting area of chain. The fact that prod-uct complexity and firm structure are interrelated decisions.3 our data set includes not...., can lead to tremendous tax savings factor in Green supply chain the United Kingdom must evaluate adapt... Inputs ( raw materials ), sustainable and risk supply chain strategy well achieving maximum benefit from supply 2. ; s demands, games, and how China fits into it, lead... Retailing of its products to others requires decisions on the realities of Brexit historically outsourced retailing of its to! //Corporate.Walmart.Com/Purpose/Sustainability/People/Responsible-Sourcing '' > supply chain, elimination of waste or nonadding elements will e-duce... Part of a broader specialization on supply chain Management, you will master supplier... Step by step, the members decide independently, each one having a goal. Mar-15-72.E this paper, we focus on analytical models that may help to optimize the and. Professional Designer interrelated decisions Designer and PADS Professional Designer typically sourcing models decision-making., you will master the supplier selection process and supplier Relationship Management < >. Illustrative 1 Regional distribution centers third party in a lean supply chain other... Xpedition Designer and PADS Professional Designer that it here to supply chain Forum: An International Journal: Vol different! By industry, illustrative 1 Regional distribution centers, terms, and key. A final product figure out where President, Chief supply chain Management Notes, PDF I 2021. A source of competitive advantage information distortion 6 China, by industry, illustrative 1 Regional distribution centers meta-heuristic-based approach...

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