Question
During the Covid19 pandemic, A&B faced several severe supply shortages. Some of them were caused by national lock-downs that shut down production at sub-suppliers. Others
During the Covid19 pandemic, A&B faced several severe supply shortages. Some of them were caused by national lock-downs that shut down production at sub-suppliers. Others were caused by difficulties in cross-boarder transportation. A&B's head of sales reports that many customers have become unhappy with BWD's delivery performance. He pressures strongly to change the corporate strategy on make-or-buy and sourcing. His objectives are to increase internal value added by building up production capacity in A&B's own production sites in the Bordeaux area and to switch procurement contracts to suppliers in France. The Chief Legal Counsel reminds in this conversation that in the past, A&B had outsourced many of its former internal activities in combination with selling related intellectual property rights to the respective suppliers - most of them companies located in Asia.
A&B's CEO asks you, A&B's Chief Procurement Officer, to estimate the feasibility of realizing the head of sales' ideas and to estimate the extent to which these ideas would reduce the risk of future supply shortages. please give your suggestions to CEO.
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