This guide has been developed by qmes strategic sourcing expert network and produced in partnership with export development canada edc, whose. Strategic purchasing practices the case study of paul bakery uk. Implementation issues are discussed using a case study wherein two products from an electronics equipment manufacturer are subjected to sourcing decisions using the framework. They illustrate the significant savings of time, effort and hard dollars that our flexrfp solution provides. Building a foundation for success understanding the difference between sourcing and strategic sourcing. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Cost savings experts for direct and indirect materials. Although strategic sourcing is essential to the university, the.
Working together in a decentralized environment case study. Highlights explores the global sourcing process from an interaction perspective through a case study of ikea. Strategic sourcing in the new economy harnessing the potential of. Implementation issues are discussed using a case study wherein two products from an electronics equipment manufacturer are subjected to sourcing. To some extent, this is the basic nature of purchas. A study of different types of business risks and their. However, locking prices for extended periods of time can sometimes be. A case study san diego county technology office july 29, 20 lessons learned after 15 years of sourcing experience. As a fortune 50 company, the client is a global leader. They provide real examples of our services and include etendering services, sqs, contract management and supplier engagement services.
Pdf an optimization approach to strategic sourcing. Strategic sourcing mro case study source one reduces mro. The goal of the thesis is to show company x the benefits of strategic sourcing in the hope that the company will implement the strategy into the everyday mission of the sourcing department and give suggestions on how such a plan can be implemented. Ingredients case study sbg was hired by a multibillion dollar food processor to help understand their current costs for their corn based ingredient category and assist in negotiating the contract. Strategic sourcing decision making is the scope of this master dissertation. Hence this study wants to focus on civil aerospace. Strategic sourcing practices, the case study of paul bakery uk bachelors thesis 44 pages, appendices 2 pages january 2016 traditionally, purchasing has been considered to be an exchange activity between buyers and sellers for a mutual benefit.
A framework and a case study article in journal of supply chain management 363. Heshe will direct and coordinate activities of the purchasing and supply chain. Strategic sourcing and procurement can bring enabling manufacturers to understand the market for materialfunctional design considerations, evaluate their current contract engineering relationships, and determine the best approach to balance costs with technical considerations. Industrial equipment strategic sourcing, industrial equipment industry, sourcing, sourcing analysis, industrial supply, construction equipment, heavy equipment, industrial products, procurement, logistics, supply chain management solutions are now available from spendedge. In addition to focusing on cost, we also consider the past performance rating like gupta and krishnan 1999.
Procurement leaders worldwide look to gep for process, technology and industry expertise, and we are happy to share our learnings from years of complex problem solving. Strategic sourcing at whirlpool china case study analysis. Metal components with bright chrome finish our client required small mechanical components with high quality bright chrome and matt powder coated finishes. The case study presents the decision by betapharm corp. A participative plan was developed to introduce a strategic sourcing. While the book focuses on the developments in strategic. Get the pdf of lulls case study challenges to order fulfillment. We proudly present the resulting ebook of this years project strategic purchasing principles and current issues. Strategic sourcing is organized since some type of methodology or process is needed. Whirlpools global sourcing strategy gss in china had many advantages as well as disadvantages.
Case studies strategic sourcing australia strategic. The results of a wellmanaged strategic sourcing initiative can be impressive and the benefits can be extended well beyond cost reduction. Why some of the worlds most popular sourcing strategies. Case studies by industry here are some examples of esourcing solutions in action involving real life business applications that people encounter everyday. Program management the challenge in june 2012, strategic sourcing was invited to join a professional team of telco managers in florida to discuss an upcoming consolidation and growth program of several call centers across the country. Strategic sourcing throughout the product lifecycle. Strategic sourcing and supplier management and integration decisions must be aligned with corporate mission and vision, have direct operating company involvement and must be based on a welldefined business case. Case studies by industry ec sourcing group procurement. The companys base of operations spanned 44 locations across 24 states and canadian provinces. A case study of the naval postgraduate school abstract the purpose of this study is to identify opportunities for strategic sourcing in the naval postgraduate school contracting office. Global supply chain management and strategic sourcing q1 product to be recommended by grunwald and vogel for assembly outsourcing based on. We identify four possible sourcing strategies that a buyer might employ. Apparels and footwear industry the case for strategic. Use the categories filter to the right to refine this list.
The findings of this study suggested that strategic sourcing enables the organization to achieve strategic advantage and at the same time act as a means in which a business condition or problem can be alleviated in a more efficient and effective manner. Strategic sourcing case studies provident spend management. The role of strategic sourcing on organizations performance. A decision flowchart incorporating these factors is given to illustrate the functioning of the proposed framework. A study of different types of business risks and their effects on banks outsourcing process case study. Food manufacturer sources steel for packaging a large food manufacturer provides one example of a very successful advanced sourcing strategy enabled through sciquests advanced sourcing optimizer. Consulting and enterprise solutions case study strategic. Global sourcing process is influenced by interactions amongst supply network actors. Strategic sourcing is the dynamic delivery of internal and external, business or itoriented resources and services to ensure that business objectives are met. The vp of purchasing and supply chain management is a key strategic leadership position for mapei americas. A sourcing business model is a combination of an organizations relationship model and economic model.
Introduction identify opportunities analyze the situation undertake strategic analysis case study create a strategic sourcing plan. Cisco it case study business management vendor management. As the end of 2011 approached, this clients facilities group faced a fortunate dilemma. Category management and strategic sourcing defined category management is an approach the federal government is applying to buy smarter and more like a single enterprise.
Since 1992, source ones procurement and strategic sourcing experts have developed flexible, customized solutions to help our clients meet their unique needs. No enterprisewide sourcing efforts conducted to leverage total volumes the company, a u. This paper examined empirically the impact of effective strategic sourcing. Best practice case study dial corporation1 recently dial corp. Procurement case studies source one, a corcentric company. Our client is a regional water and wastewater utility. The impact of effective strategic sourcing on operational efficiency case of komfo anokye teaching hospital kath helena mary boakyeand stephen seth normanyo department of purchasing and supply, takoradi polytechnic, p.
Mehrdad alipour corresponding author management department, zanjan branch, islamic azad university, zanjan, iran moalem st. This company has existing methodologies and processes to monitor and report on these benefits but. Wns corporate factsheet 2017 analytics procurement. Global sourcing strategy of one actor may influence the sourcing strategies of other actors. Strategic sourcing, it begins the critical process and lays the. It would involve creation of a sourcing group in addition to separating functions in procurement. It also includes a framework to assess an enterprises sourcing strategies and sourcing strategy capabilities. Finally, we apply a case study in nokia to demonstrate the developed models and evaluate their correctness. In strategic supply chain management, rooms must be given for buffers in delivery lead times and. A mustread case study for procurement professionals looking to incorporate a highly strategic sourcing process for improved spend efficiency and bottomline savings. Global sourcing decisions need to be understood and coordinated across global supply networks. Its not just about cost savingswhich was the traditional mindset of the procurement function, says. When they were ready to expand into more fulfillment locations, they didnt have to spend time sourcing new solutions. Sandhills utility services and cooperative opportunities to work with the military the sourcing need the u.
Sourcing strategies and their implementation in the aerospace. Case study strategic sourcing at one of the worlds largest steel companies business challenge one of the worlds largest steel companies had grown a great deal in recent years by acquiring other steel. Additionally, the many incentive and control issues that subsequently arise will be discussed. Provident spend management strategic sourcing case studies. North dakotas innovative energy alliance cooperative cooperative profile innovative energy alliance cooperative ieac is a service cooperative owned by four north. Success of this project relied on the parts having tight tolerances and fitting together seamlessly. A leading mining company transformed procurement functions and identified savings of 35% through strategic sourcing a spendedge success story mining industry challenges mining companies over.
Strategic sourcing decisions are, for example, makeor buy decisions and supplier selection. The only issue was that it had to be spent before the end of the year or it would revert back to corporate. This case study describes the creation of a global vendor management office vmo within cisco. With our proprietary technology, we analyzed 3 years of historical data and showed how the cost structure has continually increased inconsistently. Case studies our case studies are success stories that make the case for delta. Impact the bottomline cost reduction is typically the primary goal of most strategic sourcing initiatives, because savings in cost of goods sold cogs. Case study for program management strategic sourcing, inc. Finding the ideal supplier case solution at is the number 1 destination for getting the case studies. Manager, strategic sourcing turner broadcasting system, inc. Global supply chain management and strategic sourcing case study discussion questions 1. Source ones years of awardwinning engagements are a case study in procurement, sourcing, and cost reduction excellence.
Any company can evaluate the suppliers responses and then select the lowest price. The client mentioned in this case study has chosen to remain anonymous. Our research study uses a similar approach to the aforementioned work by nepal et al. Global supply chain management and strategic sourcing case study 18 th september 2016 presented to. In the first place, you shouldnt allow the situation to come to that critical path before escalating.
The goal of the thesis is to show company x the benefits of strategic sourcing in the hope that the company will implement the strategy into the everyday mission of the sourcing. The goal is to apply certain knowledge without adding to the known. Responsible sourcing in supply chains stanford graduate. Top managers at a large publicly traded mining and minerals processing corporation were searching for ways to preserve profit margins in the face of general economic turmoil and rising supply costs. April 27, 2014 professor dahan individual case study international business practicum strategic sourcing at whirlpool china q1. Regarding premium aerotecs sourcing volume the importance of military programs is minor around 10%. This paper outlines a case study on a large chemical companys strategic sourcing activities in a bid to achieve the above mentioned objectives. Working together in a decentralized environment case study sheila l. Next, it was necessary to align the strategy in sourcing and procurement with company objectives. Strategic sourcing for vendor management results in flexibility, simplicity, and reduced costs.
Strategic sourcing practices, the case study of paul bakery uk bachelors thesis 44 pages, appendices 2 pages january 2016 traditionally, purchasing has been considered to be an exchange activity. As the product was new to market, the initial order quantities were low. Gartners strategic analysis report, how to build a sourcing strategy, r181099, 23 september 2002, details gartners view of and practical suggestions on how to develop a sourcing strategy for it and business processes bps. Wns corporate factsheet 2017 free download as pdf file. Strategic sourcing helps to reduce the total cost of purchasing while maintaining quality and service.
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