Vaccine supply chain in Uganda 🇺🇬 and Senegal 🇸🇳 to be boosted by a partnership between @gavi and @ParsylHQhttps://t.co/zpsJbargCH#GotLife pic.twitter.com/X8vPHoKyDg
— Gavi (@gavi) January 25, 2019
TypePad Profile
Get updates on my activity.
Follow me on my Profile.
Categories
- Analyzing New Businesses & Business Models (230)
- Analyzing New Products (47)
- Current Affairs (203)
- Education (22)
- Energy (7)
- Environmental Management (18)
- Funny Stuff (33)
- Humanitarian Supply Chain Management (66)
- Interesting Happenings in the Business World (264)
- Management Thoughts (119)
- Miscellaneous (13)
- My Presentations (26)
- My Research Contributions (85)
- Organizations as Complex Adaptive Systems (107)
- Public Health (46)
- Quality Management (53)
- Quotations (1)
- Reflections (59)
- Strategic Supply Chain Management (274)
- Sustainable Economic Development (30)
- Technology & Innovation Management (162)
- Travel (8)
SEARCH
« December 2018 | Main | February 2019 »
Thursday, 31 January 2019
Tuesday, 29 January 2019
Wednesday, 23 January 2019
Monday, 21 January 2019
Selecting a Category Sourcing Strategy
Profiling a purchase category and analyzing the supply market should be followed with the consideration of the sourcing strategy that needs to be pursued. A variety of sourcing approaches are possible – “generic strategies”. These include:
- Volume leveraging – pursue pricing and/or service improvements based on volume of business
- Best price – pursue best price/value by exploiting competition among suppliers
-
Collaboration – pursue cost/value enhancement through collaboration with supplier(s)
-
Demand management – pursue savings through control of what and how much is purchased
-
Process improvement – pursue objectives through redesign of processes and/or supply chain structure
For categories that are characterized by high value potential and high supply market complexity, the generic approach is to build supplier relationships to generate shared value. The specific tactics include, highly collaborative relationships, longer-term agreements, supplier involvement in product design and innovation, joint process improvement activities, joint cost reduction activities, and supplier co-location.
The leverage strategy works best for categories that are characterized by low market complexity and high value potential. The generic approach is the leverage volume, encourage competition to realize cost & performance improvements. The specific tactics include volume leveraging, supply base consolidation, national/regional global contracts, longer-term agreements, competitive bidding, allocating business based on performance, and collaborating to reduce cost and sharing benefits. For volume leveraging, organizations can combine volume across business units and/or locations. They can reduce supply base, concentrate volume with fewer suppliers, and leverage volume over time through long term contracts. Organizations can rationalize SKUs to increase volume, pool volume across commodities or sub-commodities, and pool volume with other buyers.
The tactics for purchase categories that have high supply market complexity and low value potential hinges on ensuring supply and reducing supply market complexity.
Finally, for purchase categories that have low value potential and low supply market complexity, the generic approach is to minimize transaction cost & effort. The specific tactics could include using purchasing cards, on-line catalogs, blanket purchase orders, reducing supply base and managing demand by reducing variety and consumption.