UNIT IV

SOURCING AND COORDINATION IN

SUPPLY CHAIN
•Role of sourcing in supply chain management
•Supply chain supplier selection assessment and contracts
•Design collaboration
•Sourcing planning and analysis
•Supply chain co-ordination
•Bull whip effect
•Effect of lack of coordination in supply chain and
obstacles
•Building strategic partnerships and trust within a supply
chain.
•Role of sourcing in supply chain management
•Acquiring raw materials from suppliers
•Set of business Process
•Major decision – outsource/in-house
•Outsource – Third party
•Eg: Dell, P&G
•Collaboration
•COGS(Cost Of Goods Sold)
•Eg: CISCO
•Effective Sourcing Process
Benefits form Effective Sourcing
•Better economies
•Reduce Purchasing cost
•Design collaboration
•Co-ordination
•Auctions
Benefits form Effective Sourcing
•Better economies
•Reduce Purchasing cost
•Design collaboration
•Co-ordination
•Auctions
Obstacles to Coordination in a Supply Chain
•Incentive Obstacles
•Information Processing Obstacles
•Operational Obstacles
•Pricing Obstacles
•Behavioral Obstacles
Building Strategic Partnerships and Trust in a Supply Chain
•Trust-based relationship
Dependability
Leap of faith
•Cooperation and trust work because:
Alignment of incentives and goals
Actions to achieve coordination are easier to implement
Supply chain productivity improves by reducing duplication or
allocation of effort to appropriate stage
Greater information sharing results