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P+S > W2 > Flashcards

W2 Flashcards

1
Q

what is a sourcing strategy

A
  • the decision over how many suppliers should be used during purchasing (structural decision)
  • can also apply to the type of supplier relationship - Kraljic’s model
  • if the item is strategic the product should be categorised as high cooperation etc. (look at diagram)
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2
Q

the sourcing methods

A

(look at diagram)

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3
Q

single sourcing

A
  • the use of one source per product (making use of one supplier)

Adv:
- economies of scale - buying in bulk from one person

  • control costs and risk better - close eye on one supplier
  • fits lead supply and partnership approach
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4
Q

multiple sourcing

A
  • using three or more suppliers
  • focus on price and delivery

Adv:
- reduces dependency on one supplier

  • spreading risk
  • increases inter-supplier comp
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5
Q

dual sourcing

A
  • 2 suppliers providing a company with the same product and are in competition

Adv:
- tension between comp

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6
Q

parallel sourcing

A
  • one buyer two suppliers
  • the same product from two supplier are used to make different products
  • water bottle example - still and flavoured

Adv:
- suppliers not competing with each other one is just back up

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7
Q

delegated sourcing

A
  • company wants to produce a product but doesn’t have the expertise so delegates to a specialist and the specialist finds and sources the suppliers

Adv:
- enhance relationship development with preferred suppliers
- work closely with few suppliers

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8
Q

triads

A
  • two suppliers come together and work together to provide the product
  • the third part significantly multiplies the relational and contractual complexity
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9
Q

suppliers as ‘full service’ integrated systems

A
  • moving from tactical to high collaboration
  • Rolls Royce example
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10
Q

what is a relationship

A
  • it is a process (has an input and an output)
  • need to understand the parameters within which the relationship sits
  • working with suppliers isn’t just about buying parts but working long term to design new ranges of products (through relationships)
  • firms need to evaluate the output of relationships in relation to the inputs:
  • scales and knowledge
  • communication
  • cultural values
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11
Q

reasons for failure of SRM

A
  • overly optimistic
  • poor comms
  • lack of financial commitment
  • cultural mismatches
  • lack of shared benefits
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12
Q

importance of SRM

A
  • absorb suppliers knowledge
  • access new capabilities
  • learn about new tech
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13
Q

paradox in supply

A
  • firms are competitors and collaborators at the same time
  • each can only manage self but must rely on activities in others
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14
Q

interaction between players and supply chain

A
  • interactions are changing
  • price has changed
  • info has changed
  • relationships have changed
  • went from sharing bits of info to high level of transparency (integrated to adversarial)
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15
Q

types of supplier relationships

A

(look at graph)

  • best strategy is to use partnership or supply manager
  • do everything important
  • the best way out is to be vertically integrated (buy out suppliers and do it yourself)
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16
Q

lean supplier partnerships

A
  • any activity that doesn’t add value should be eliminated
17
Q

spectrum of relationships

A
  • relationships move through a spectrum
  • adversarial on one side:
  • short term orientation
  • transaction based
  • focus on price, quality
  • little sharing of info
  • collaborative on the other side:
  • long term orientation
  • cooperation based
  • high supplier contact
  • high trust
  • sharing of info
  • collaboration is the main benefit to a long term partnership
  • tackling environmental challenges require collaboration and understanding the basic tenets of how to form a partnership (trust, respect etc. )
18
Q

Effective relationship and value

A
  • value is anything that reduces costs and increases market value
  • for a buyer and supplier to have value they need high levels of trust
  • relationships last longer with trust
  • can identify issues and solve them quicker

characteristics of healthy relationship`;
- high trust
- efficient comms
- collaborative problem solving

dimensions of relationship value:
- problems spotted early and resolved
- reduced transaction costs

19
Q

IMP model

A
  • IMP considers the long term partnership
  • work closely over a long period of time that there is a point where you can’t tell the difference between activities of the buyer and supplier (institutionalisation)

(look at diagram)

  • Sako (1992) introduced trust characteristics to the model
  • relationships are illustrated on a spectrum from ACR to OCR
20
Q

ACR-OCR Model

A
  • relationships move from adversarial to high levels of collaboration partnerships

development of trust:
- as you move from arms length (ACR) to obligation (OCR) there are different factors you move through:
- contractual - I engage with you for the first time we write a contract and expect to meet the expectations of the contract
- competence - ability to perform the tasks that are given to you, meet expectations of demand (showing competence)
- goodwill - over a long period of time trust forms and if smth goes wrong business knows even if it isn’t in the contract supplier can fix it

  • these elements of trust ate linked to the spectrum of relationship development and the degree of asset specificity
  • asset specificity - how customisable the product being made is
21
Q

linkage of trust elements (Sako)

A
  • high amounts of trust = high customisation
  • low amounts of trust = low customisation

(look at diagram)

22
Q

Evaluation of Sako

A

Adv:
- provides definition of trust
- built on empirical as opposed to conceptual research

Disadv:
- may be more factors than trust and asset specificity
- too rigid - what about influence of power in relationships?

23
Q

Power and dependence

A
  • power and dependence have many dimensions and underlying factors:
  • company size and volumes
  • control over access to unique assets
  • one party may be powerful in one respect, the other in another respect
24
Q

Buyer and supplier power model

A
  • If company is powerful do they have to rely on a supplier and vice versa (what the model looks at)

(look at diagram)

25
Q

dependency - certainty model

A
  • the more you work with suppliers the more your certainty of them increases
  • the model is a way for firms to think of how to select and manage their collab relationships, then decide whether to change or keep it

P+S (5 decks)

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