Multiple Sourcing Vs Single Sourcing


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It is on Multiple Sourcing Vs Single Sourcing . Presented by Shefali Srivastav, Samarth Gulati of FMG-18A, FORE School of Management

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Multiple Sourcing Vs Single Sourcing

  1. 1. Multi Sourcing vs Single Sourcing<br />Samarth Gulati91047<br />Shefali Srivastava 91050<br />
  2. 2. Problems in Supply Chain <br />Disruptions: natural disasters, strikes, terrorism attacks<br />Uncertainty<br />Vulnerability<br />Complexity<br />
  3. 3. What should be done<br />Build a resilient supply chain<br />Prepare the firm against disruption<br />respond to uncertainty effectively<br />secure the supply-chain<br />
  4. 4. Multiple Sourcing<br />Single Sourcing<br />
  5. 5. HIGH<br />SUPPLY RISK<br />HIGH<br />LOW<br />LOW<br />FINANCIAL IMPORTANCE<br />
  6. 6. Need for Single Sourcing<br />
  7. 7. Need for Multiple Sourcing<br />
  8. 8. Multiple Sourcing vs Single Sourcing<br />Multiple Suppliers<br />PRICE<br />INDIRECT COSTS<br />Single Supplier<br />PRICE<br />INDIRECT COSTS<br />
  9. 9. Ford Case<br /> In 1998, supply problems at Ford resulted in the temporary, three-day shutdown of the Fiesta and Puma manufacturing facilities in Cologne and Dagenham, Germany. <br /> The source of the supply problem was a computer glitch at Ford’s provider of door and trunk latches. <br /> Those three days cost Ford approximately £70 million in labour costs and the production of about 7000 vehicles.<br />
  10. 10. Ericsson vs Nokia<br />Philips suffered a fire in its plant of Alburque in march 2000.<br />Philips’s site became unable to produce the computer chips that its customers, Nokia and Ericson, needed to produce mobile phone handsets. <br />Nokia realized very early that there was a problem in the production of chips, and pressured Philips to reroute capacity. <br />Ericsson detected the problem slowly and when it turned to Philips, it was too late as Nokia had already claimed all the production. <br />The damages were very important for Ericsson as Philips was its only supplier:<br />Ericsson lost $1.8B, and almost 4% of market share to Nokia.<br />
  11. 11. Conclusion<br />