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25 Cards in this Set
- Front
- Back
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Define single sourcing |
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Define dual sourcing |
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Define multiple sourcing |
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Define parallel sourcing |
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Define second sourcing |
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What are some different reasons to choose single sourcing? |
· When you have 1 supplier, you can negotiate with thesupplier better · You can have more innovation · Monopoly · Overview, efficient, less administration · Very small orders · Short time to market · Volume discount · High investments per supplier · Easier to establish cooperation |
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What some some different reasons to choose multiple sourcing? |
· Risk managemen · Keep suppliers alert · Assure supply · Legal obligations · Stimulate innovation · Required capacity · Avoid technological dependence · Spread risks/opportunities |
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What are some different roles that suppliers can take? |
- Jobber - Co-supplier - Partner |
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When is it best that the supplier takes on the role of jobber? |
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When is it best that the supplier takes on the role of co-supplier? |
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When is it best that the supplier takes on the role of partner? |
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What are the major challenges when purchasing abroad? |
o language, politics, culture and social differences o lead time, delivery |
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What are the minor challenges when purchasing abroad? |
o currency and payment problems o tariffs, duties and paperwork o quality, rejects, cooperationinternal resistance |
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Which factors influence supplier satisfaction? |
- Economic factors - Operational factors - Relational factors |
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Why is supplier monitoring important? |
- links supply strategy to actual attainment - assess supplier’s compliance with performance-expectations - assess supplier’srole in relationship |
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What are some different techniques to monitor and evaluate supplier performance? |
- Benchmarking - Audits at supplier - Vendor rating |
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What is a supplier audit? |
When you can send a group of experts to the suppliers site to get information first hand |
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What is a vendor rating? |
Vendor rating is often done by several people in one organizations, such asemployees from R&D, Quality Control and Purchasing |
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Define supplier development |
Any activity undertaken by a buyer toimprove a supplier's performance or capabilities to meet the buyer'sshort and long-term supply needs |
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What are some advantages of buyer involvement? |
- Provides a fresh outward perspective - Buyer pressure as catalyst for process change - External pressure legitimizes need for change |
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What are the two main goals of supplier development? |
- Developing supplier capability - Improving operational performance |
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What are the characteristics of a supplier audit? |
Qualitative Future Broad scope Time consuming In cooperation with supplier New and current suppliers |
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What are the characteristics of a vendor rating? |
Quantitative Historic orientation Limited, few aspects Standard data By buyer only Only current |
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What are the different steps in generic procedures for initiating supplier development? |
1) Identifycritical commodities for development 2) Identifycritical suppliers for development 3) Formcross-functional development team 4) Meetthe supplier’s top management team 5) Identifyopportunities and probability for improvement 6) Definekey metrics and cost-sharing mechanisms 7) Reachagreement on key projects and joint resource requirements 8) Monitorstatus of projects and modify strategies as appropriate |
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What are some different supplier development strategies? |
- Competitive pressure - Evaluation and certification - Incentives - Direct involvement |
