strategic sourcing

Question 1

Work conducted within company
Work conducted in foreign markets

Answer 1

Captive offshoring

Question 2

Work conducted in domestic markets
Work conducted within company

Answer 2

Internal sourcing

Question 3

Work conducted by outside supplier
Work conducted in foreign markets

Answer 3

Offshore outsourcing

Question 4

Work conducted in domestic markets
Work conducted by outside supplier

Answer 4

Outsourcing

Question 5

Resources:

Answer 5

assets tied to the organization
Explicit: raw materials production methods, factories

Question 6

Capabilities:

Answer 6

processes and routines to get work done
Explicit: direct labor: manufacturing, product design
Implicit: indirect labor: support services, tax collections

Question 7

sourcing framework

Answer 7

demand/supply landscape, macro environemnt

Question 8

demand landscape

Answer 8

Modularity; Tradability(High value/transport; High shelf life ; complementary goods , customer preferences, customer buying power

Question 9

supply landscape

Answer 9

Opportunities to leverage scale: lower cost due to economies of scale
; Nature of the industry’s supply’s basPhysical footprint
; Financial considerations

Question 10

Macro environment

Answer 10

Large scale changes can affect the tradability of goods/services:
Technology (internet, blockchain, cloud computing/services)
Currency (exchange rates, tariffs, trade agreements)
Regulatory
Policy (tax scheme, government incentives)

Question 11

Inventory pipeline

Answer 11

When the product has to travel a long way:
Higher order cost (tariffs, customs fee)
A lot of inventory is in transit (pipeline inventory)
there is often more uncertainty around the final delivery time (safety inventory)
Goods can be damaged (holding cost)
Goods can be out of date upon arrival (holding cost)