1 The COO of Super Cycles was considering her sourcing strategy. I have two key questions, for...

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1 The COO of Super Cycles was considering her sourcing strategy. ‘I have two key questions, for each of our outsourced parts, what is the risk in the supply market, and what is the criticality of the product or service to our business? As far as risk is concerned, we can consider the number of alternative suppliers, how easy it is to switch from one supplier to another, possible exit barriers, and the cost of bringing operations back in-house. As far as criticality is concerned, we can consider each component’s importance in terms of volume purchased, percentage of total purchase cost, and the impact on business growth.’ Four key outsourced components are shown in T able 7 .3 . What approach to sourcing these components would you er commend?

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Operations And Process Management

ISBN: 9781292176130

5th Edition

Authors: Nigel Slack; Alistair Brandon-Jones

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