MARKET 1 Lecture Notes - Lecture 27: Outsourcing, Single Source Publishing, Intensify

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Product: simultaneous engineering, modular sourcing/unit sourcing, product standardization, etc. Supply: global sourcing, local sourcing, market mix, market concentration, single sourcing, multiple sourcing, stock-keeping, just-in-time, purchasing co-operation, etc. Increase early warning information: speed up information flow, know-how transfer, etc. Service: delegation of duties: outsourcing, delegation of waste disposal: handling of procurement operations, etc. Price: rock-bottom pricing, fair pricing, average market pricing, etc. Product standardization: common part strategy, concept of modular assembly, platform strategy, a-component sourcing, batch engineering. Opportunities: new make-or-buy alternatives, better competitiveness and image, access to new markets, quality improvement, supply assurance, technology obtainment, cost reduction. Challenges: language problems, exchange rate (in)stability, cultural differences, logistical difficulties, know-how transmission, legal restrictions, market complexity/transparency. Multiple sourcing: procure the same part from more than one supplier, sets up competition, high overhead low risk of delivery failure. Single sourcing: procure a part from one supplier only, encourage long term contract, encourage communication and sharing, high risk of delivery failure less overhead.