Sourcing Strategies and Relationships.

Question 1

What is Single Sourcing?

Answer 1

• 1 source per product
• Collaboaration between firm and 1 supplier
• Fits Lean strategy
• Reduce indirect costs

Question 2

What is Multiple Sourcing?

Answer 2

• Multiple sources for 1 product
• Competition between suppliers
• Focus on price (cheap)
• Better flexibility
• Less risk

Question 3

What is Dual/Parallel sourcing?

Answer 3

• 2 sources/suppliers for 1 product
• Combines benefits of single and multiple sourcing.

Question 4

What is a buyer-supplier relationship?

Answer 4

Complexe interaction process between 2 firms which can be managed and imprived over time.

Question 5

Sako model of relatonship trust?

Answer 5

• Developing the concept of trust in purchasing and supplier relationships. Illustrated on a spectrum between Arms Length contractual Relationships (ACR) and Obligational Contractual relationships (OCR).
• 3 types of trust :
  1) Contractual Trust : perform the contract.
  2) Competence Trust : Ability to perform
  3) Goodwill Trust : Willingness to do more

Trust is linked to asset specificity.

Question 6

Contractual trust is linked to high or low asset specificity?

Answer 6

Low

Question 7

Goodwill trust is linked to high or low asset specificity ?

Answer 7

High

Question 8

Disadvantages of Sako model of relationships

Answer 8

-too rigid
- does not consider other factors that affect relationships
- Too rigid

Question 9

What is Dependency - Certainty Model?

Answer 9

Focus on relationship drivers and motivators.
- explains how firms will collaborate if the payoff will give them an advantage.

Question 10

What is Sourcing strategy?

Answer 10

Structural decision of how to use different sources effectively.