lecture 4 Flashcards
why would there be single sourcing?
for when there is only one supplier or not needing more than one
why does a firm choose to single source?
Have better overview and less administration
can order small orders
volume discount on the orders
what is the difference between multiple sourcing and parallel sourcing?
multiple sourcing the firm has several suppliers for one not having what they need and/or spread risks
Whilst parallel sourcing is when the are various suppliers and the firm has them compete each other to stimulate innovation between suppliers
What factor can affect supplier satisfaction?
Economical factors, operational factors and relational factors
What is the purpose of monitoring and evaluating suppliers?
to assess supplier’s compliance with performance-expectations
What is one consequence of monitoring and eval?
Collaborative improvement
What is one technique for monitoring and evaluation and what it entails?
benchmarking, where there is continuous comparison to the best supplier
What is another techniqie for M and EV? what it entails?
Audit at supplier where the buyer personally goes to the supplier to make an inspection, look at documents, and potential suppliers.
It is costly and time consuming
What is vendor rating and does it do?
is when there is a periodic evaluation done by the buyer to the supplier, it is done with historic data
What does supplier involvement entail?
is any activity taken by a buyer to improve their supplier performance or capabilities in the short-term or long-term
What are two advantages of buyer involvement?
it can provide the supplier a fresh perspective and the buyer can be the catalyst for the supplier to improve
What is the most effective type of supplier involvement and why?
direct involvement since the buyer is more proactive in improving the supplier, be it capital investment, equipments, partial acquisition
What is a way to better your supplier by competition?
competitive pressure
What are the reasons for buyer specific barriers in supplier development?
Lack of buyer top people commitment or overly ambitious expectations that go unrealized
Lack of mutual trust, poor cultural alignment is what type of supplier development barrier?
Buyer-supplier interface
