Global sourcing
Global sourcing <ul><li>Sourcing  </li></ul><ul><ul><li>Identify, select and develop suppliers  </li></ul></ul><ul><li>Out...
Competitive advantage  <ul><li>Outsourcing  </li></ul><ul><ul><li>Reduce cost </li></ul></ul><ul><li>IPS </li></ul><ul><ul...
Activities most outsourced <ul><li>Resource-intensive – high labour or capital cost </li></ul><ul><li>Require specialist c...
Outsourcing purchasing <ul><li>Where purchasing is a peripheral rather than a core activity </li></ul><ul><li>Where the su...
Drivers of outsourcing <ul><li>Higher quality </li></ul><ul><li>Lower cost of supply </li></ul><ul><li>Limited finance </l...
Discuss <ul><li>What could be the reasons of outsourcing for </li></ul><ul><ul><li>IBM </li></ul></ul><ul><ul><li>Keytroni...
Benefits of outsourcing <ul><li>Frees management time </li></ul><ul><li>Reduced staff costs </li></ul><ul><li>Increased fl...
Discuss <ul><li>What are the benefits of outsourcing to  </li></ul><ul><ul><li>IBM </li></ul></ul><ul><ul><li>Keytronics? ...
Problems of outsourcing <ul><li>Quality of service </li></ul><ul><li>Long-term commitment </li></ul><ul><li>Communication ...
Discuss <ul><li>What could be the problems of outsourcing to </li></ul><ul><ul><li>IBM </li></ul></ul><ul><ul><li>Keytroni...
Objections to outsourcing <ul><li>Loss of competitive advantage </li></ul><ul><ul><li>Loss of skills, expertise, insuffici...
Discuss <ul><li>What would be your objections, if any, to outsourcing arrangement for </li></ul><ul><ul><li>IBM </li></ul>...
Problems of outsourced suppliers <ul><li>High staff turnover </li></ul><ul><li>Poor project management skills </li></ul><u...
Discuss <ul><li>What would be the usual problems that can happen to the outsourced suppliers of </li></ul><ul><ul><li>IBM ...
Implementing outsourcing <ul><li>Fig 11.7, Page 403 </li></ul><ul><li>Seven steps to making a decision about strategic out...
Outsourcing - NIKE <ul><li>Take some ideas from NIKE outsourcing with Taiwan and Korea companies in Asia </li></ul>
Discuss <ul><li>Assess the advantages and disadvantages of global sourcing strategies used by both IBM and Keytronics. </l...
Upcoming SlideShare
Loading in...5
×

206global sourcing

6,049

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
6,049
On Slideshare
0
From Embeds
0
Number of Embeds
26
Actions
Shares
0
Downloads
27
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

206global sourcing

  1. 1. Global sourcing
  2. 2. Global sourcing <ul><li>Sourcing </li></ul><ul><ul><li>Identify, select and develop suppliers </li></ul></ul><ul><li>Outsourcing </li></ul><ul><ul><li>A management strategy by which major non-core functions are transferred to specialist, efficient, external providers </li></ul></ul><ul><li>Global sourcing </li></ul><ul><ul><li>Identify, select and develop suppliers including outsourcing partners globally </li></ul></ul><ul><li>(Pg 392) </li></ul>
  3. 3. Competitive advantage <ul><li>Outsourcing </li></ul><ul><ul><li>Reduce cost </li></ul></ul><ul><li>IPS </li></ul><ul><ul><li>Procurement specialist </li></ul></ul>
  4. 4. Activities most outsourced <ul><li>Resource-intensive – high labour or capital cost </li></ul><ul><li>Require specialist competence </li></ul><ul><li>Rapid changing technology, requiring expensive investment </li></ul><ul><li>Quick changing market, for which it is costly to recruit, train and retain staff </li></ul><ul><li>Fluctuating work patterns in loading and throughput </li></ul><ul><li>( Pg 392) </li></ul>
  5. 5. Outsourcing purchasing <ul><li>Where purchasing is a peripheral rather than a core activity </li></ul><ul><li>Where the supply base is small and based on proven cooperation and there are no supply restrictions </li></ul><ul><li>Where there is a small supplier base providing non-strategic, non-strategic, non-critical, low-cost, low-risk items (Pg 400) </li></ul>
  6. 6. Drivers of outsourcing <ul><li>Higher quality </li></ul><ul><li>Lower cost of supply </li></ul><ul><li>Limited finance </li></ul><ul><li>Focus on core business </li></ul><ul><li>Cooperation – outsource to avoid conflicts </li></ul><ul><li>HRM considerations </li></ul><ul><ul><li>Avoid conflicts with trade union </li></ul></ul><ul><ul><li>(Pg 400) </li></ul></ul>
  7. 7. Discuss <ul><li>What could be the reasons of outsourcing for </li></ul><ul><ul><li>IBM </li></ul></ul><ul><ul><li>Keytronis? </li></ul></ul>
  8. 8. Benefits of outsourcing <ul><li>Frees management time </li></ul><ul><li>Reduced staff costs </li></ul><ul><li>Increased flexibility </li></ul><ul><li>Cost certainty </li></ul><ul><li>Reduction in staff management problem </li></ul><ul><li>Improved consistency of service </li></ul><ul><li>Reduced capital requirements </li></ul><ul><li>Reduced risk (Pg 401) </li></ul>
  9. 9. Discuss <ul><li>What are the benefits of outsourcing to </li></ul><ul><ul><li>IBM </li></ul></ul><ul><ul><li>Keytronics? </li></ul></ul>
  10. 10. Problems of outsourcing <ul><li>Quality of service </li></ul><ul><li>Long-term commitment </li></ul><ul><li>Communication with suppliers </li></ul><ul><li>Dependence on few suppliers </li></ul><ul><li>Extra training </li></ul><ul><li>Reduction in flexibility </li></ul><ul><li>Coordinating different suppliers </li></ul><ul><li>Redundancy payments </li></ul>
  11. 11. Discuss <ul><li>What could be the problems of outsourcing to </li></ul><ul><ul><li>IBM </li></ul></ul><ul><ul><li>Keytronics? </li></ul></ul>
  12. 12. Objections to outsourcing <ul><li>Loss of competitive advantage </li></ul><ul><ul><li>Loss of skills, expertise, insufficient internal investment, passing of knowledge and expertise to suppliers </li></ul></ul><ul><li>Overdependence on suppliers </li></ul><ul><li>Lack of management skills to control suppliers </li></ul><ul><li>Unrealistic expectations of outsourcing providers </li></ul><ul><li>(Pg 402) </li></ul>
  13. 13. Discuss <ul><li>What would be your objections, if any, to outsourcing arrangement for </li></ul><ul><ul><li>IBM </li></ul></ul><ul><ul><li>Keytronis? </li></ul></ul>
  14. 14. Problems of outsourced suppliers <ul><li>High staff turnover </li></ul><ul><li>Poor project management skills </li></ul><ul><li>Lack of commitment </li></ul><ul><li>Shallow expertise </li></ul><ul><li>Insufficient documentation </li></ul><ul><li>Lack of control over large suppliers </li></ul><ul><li>Poor staff training </li></ul><ul><li>Page 403 </li></ul>
  15. 15. Discuss <ul><li>What would be the usual problems that can happen to the outsourced suppliers of </li></ul><ul><ul><li>IBM </li></ul></ul><ul><ul><li>Keytronics? </li></ul></ul>
  16. 16. Implementing outsourcing <ul><li>Fig 11.7, Page 403 </li></ul><ul><li>Seven steps to making a decision about strategic outsourcing </li></ul>
  17. 17. Outsourcing - NIKE <ul><li>Take some ideas from NIKE outsourcing with Taiwan and Korea companies in Asia </li></ul>
  18. 18. Discuss <ul><li>Assess the advantages and disadvantages of global sourcing strategies used by both IBM and Keytronics. </li></ul><ul><li>What is global sourcing? </li></ul><ul><li>Assess the advantages and disadvantages of global sourcing strategies </li></ul><ul><li>Conclusion </li></ul><ul><li>Notes: </li></ul><ul><li>Relate to IBM and Keytronics </li></ul><ul><li>Read page 515 and 521 </li></ul>
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×