Lecture 3 Flashcards
1
Q
category sourcing
A
- process by which firms develop and implement their strategies to groups of services and product that they buy
- defines sourcing objectives
- how the company will select and interact with its supply base
2
Q
category management
A
continuous process in which different departments collaborate to identify and implement improvements
3
Q
sequence of strategic alignment
A
- business goals
- performance objectives
- category sourcing strategies
- supplier selection criteria
- contract performance terms
- supplier performance criteria
- -> each step has to be completed in order to get to the next step
4
Q
six buckets approach
A
- product/ process structuring
- supply base structuring
- sourcing
- contracting
- supplier development
- supply chain considerations
5
Q
product/process structuring
A
- defining the kind of products we want to buy
- such as design, specifications, standard
6
Q
supply base structuring
A
- defining the number of suppliers
the location, type, supplier networks, role of the supplier
7
Q
sourcing
A
- deciding whether we want to insource or outsourcer
how to allocate volume across suppliers
supplier segmentation
tco
8
Q
contracting
A
- how our contracts will look like
- local vs corporate
- length, duration
- terms and conditions
9
Q
Supplier development
A
- what are the best in class targets we want to set
- how are we helping suppliers meet those targets
10
Q
supply chain considerations
A
our forecasting plans, methods, and inventory locations
11
Q
standard classification systems
A
- segment
- family
- class
- category/commodity
12
Q
four main category sourcing strategies
A
- performance based partnership
- competitive bidding
- secure supply + search for alternatives
- systems contracting + E-procurement solutions
13
Q
performance based partnership
A
- this is for strategic products
- you want to keep this kind of suppliers close to you to innovate and improve quality
- usually 1 or 2 suppliers
- critical for products cost price, dependence on suppliers
14
Q
competitive bidding
A
- have several suppliers and keep them aware of the other suppliers
- for leverage products
- substitution is possible
15
Q
secure supply + search for alternatives
A
- for bottleneck products
- you want to find suppliers in new regions
- monopolistic market
- large entry barriers
