SCM 303 Lecture Notes - Lecture 23: Product Liability, Exchange Rate, Back Office
9 Dec 2016
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Planning, evaluating, implementing, controlling, and improving all sourcing activities for both highly important and routine decisions. Analyses to identify areas for emphasis and improvement. Strategic sourcing outsourcing (although many people think so), but is a part of it. Strategic sourcing perspective on supplier margins: they should be sufficient to enable supplier profitability, long-tem survival, and development. Strategic cost management analyses: spend analysis, price analysis, cost analysis, total cost of ownership analysis, outsourcing (make vs. buy) analysis. Major manufacturer of agricultural and construction equipment. Analysis of work glove spend at 10 plants: . 4 million annual spend, 425 unique skus for gloves, 20 suppliers. Standardize and reduce part numbers and suppliers: estimated ,000 annual savings. Price analysis: the process of comparing supplier prices against each other or against an external benchmark. Critical make sure you are comparing items with the same: specifications, quality levels, lead times, warranties, etc. (apples-to-apples) Most useful when there are many suppliers available in the marketplace.
