Upload
abba
View
44
Download
3
Embed Size (px)
DESCRIPTION
New Directions in Supply. Source One Management Services, LLC 724 Fitzwatertown Road Willow Grove, PA 19090 (215)-902-0200 www.sourceoneinc.com. Lesson 5. Developing and Implementing Supply Strategies. Supply Segmentation. - PowerPoint PPT Presentation
Citation preview
New Directions in Supply
Source One Management Services, LLC724 Fitzwatertown RoadWillow Grove, PA 19090
(215)-902-0200www.sourceoneinc.com
Lesson 5
Developing and Implementing Supply
Strategies
Supply Segmentation
organizing supply strategies, tactics, and management approaches to effectively link them to overall firm goals
Segments include: Risk and Value Cost/Value Market Complexity
Risk and Value
Risk Extent of negative outcomes if
the good or service is of low quality, too expensive, or becomes unavailable
Value Usually measured in $, but could
also have intrinsic value
Risk and Value
High
Low
Low HighVALUE
RISK
Office Supplies Telephone Service
Working with Client (our end)
Ability to Travel
Network Server
Test Projects
New Sourcing Strategies
Single Source Parts
Market Complexity
Low Many Suppliers Excess Capacity Standard Specs. Possible
Substitutes
High Few Suppliers Restricted Capacity Unique Specs. No Substitutes
Putting it Together
Low
Low High
High
COST/VALUE
MA
RK
ET
CO
MP
LE
XIT
Y
Tactical
Streamline Process
Leverage
Maximize Leverage
Critical
Reduce Risk or Eliminate Altogether
Strategic
Supplier Partners
Relationship Strategy
Transaction Focus
LESS Communication Length of Contract Supplier Involvement
Appropriate For: Low Product Value Low Risk Product Low Market Complexity
Collaboration Focus
MORE Communication Length of Contract Supplier Involvement
Appropriate For: High Value Product High Risk Product High Market
Complexity
Chapter 6
Strategic Sourcing: Where Did it Come From? What Has it Accomplished? Where is it Going?
Evolution of Sourcing
Sourcing Has Become… Organized Systematic Collaborative
Seven-Step Sourcing ProcessStep 1: Internal Assessment
Step 2: Supplier Market Assessment
Step 3: Collect Supplier Information
Seven Step Sourcing ProcessStep 1: Internal Assessment
Step 2: Supplier Market Assessment
Step 3: Collect Supplier Information
Step 4: Develop Sourcing Strategy
How competitive is the supplier marketplace?
Need vs. opportunity to test incumbent relationships
Any alternatives to a competitive assessment?
Seven Step Sourcing ProcessStep 1: Internal AssessmentStep 2: Supplier Market AssessmentStep 3: Collect Supplier InformationStep 4: Develop Sourcing Strategy
Step 5: Solicit and Evaluate Bids
Seven Step Sourcing ProcessStep 1: Internal AssessmentStep 2: Supplier Market AssessmentStep 3: Collect Supplier InformationStep 4: Develop Sourcing StrategyStep 5: Solicit and Evaluate Bids
Step 6: Negotiate with and Select Suppliers
Seven Step Sourcing ProcessStep 1: Internal AssessmentStep 2: Supplier Market AssessmentStep 3: Collect Supplier InformationStep 4: Develop Sourcing StrategyStep 5: Solicit and Evaluate BidsStep 6: Negotiate with and Select Suppliers
Step 7: Implement Recommendations
Supply Competitiveness Continuum Monopoly Single Source
Duopoly Oligopoly
Competitive Commodity
Value-Based Sourcing
Traditional Sourcing
Focus on Prices
Total Cost of Ownership
Process Driven
Procurement Skills
Value-Based Sourcing
Focus on Value
Total Contribution to Ownership
Strategic Intent-Driven
Business Skills
Resources
Supply Management Handbook, Seventh Edition, McGraw-Hill
Source One Management Services, LLC www.SourceOneInc.com