Please complete the following "Procurement Outsourcing Strategies" scenario.

SCENARIO DESCRIPTION

You are the Supply Manager for Wonderful Widgets. The company produces one product, widgets. The Company can procure its widget parts from various suppliers or use its current equipment, facility, layout, and materials to produce the component in-house.

THE PROBLEM

As the Supply Manager you see the operational costs increase each month. You need to reduce these costs and streamline processes before the end of the quarter. Corporate will see these costs on the quarterly reports. You need to be proactive.

ADDITIONAL INFORMATION

As the Supply Manager you are responsible for making all decisions pertaining to procurement. Wonderful Widgets can produce the parts needed to assemble the widgets OR they can outsource the parts to a variety of suppliers.

ADDITIONAL INFORMATION

Remember, Wonderful Widgets can produce the components internally or buy them from their suppliers. Based on historical data and knowledge of customers, you know:

1. Value is not attached to the component

2. Clockspeed is slow

3. No competitive advantage exists

Outsource

ADDITIONAL INFORMATION

As the Supply Manager, you decide to outsource or procure the component from one or multiple suppliers. Now, you must think about supply risk and profit impact. You decide the following:

1. Supply risk is low

2. Profit impact is low

ADDITIONAL INFORMATION

Based on what you know, the component is considered to be a functional part/product verus an innovative product. Likewise, this fits with low supply risk and low profit impact. You also realize that using multiple suppliers is the best option.

DECISION POINT

As the Supply Manager, you decide to outsource or procure the component from multiple suppliers. Based on what you know at this time, which procurement strategy is the best option?

A. Minimizing Total Landed Cost

B. Reducing Lead Times & Supply Flexibility

Your task is to determine whichprocurement strategy is best for the company.

Part 2:

Start your paper by giving a brief summary of the scenario. Then identify the problem at hand. Write a couple of paragraphs that critically evaluate the three possible solutions (describe advantages and disadvantages of each). Doing this will help you make the best recommendation. Choose a solution by making a clear and specific recommendation. Describe how the company can implement your recommendation.

**TIP:Use headings in your paper for the area I have underlined. Do not forget to read and review the rubric.Write in third person. Use APA format. You must use at least 3 sources with in text citations for each.

At the end, discuss the questions that are presented below.

Answer the following questions: What did you find challenging in completing the scenario? How do strategic alliances impact procurement outsourcingstrategies ? Provide your response by uploading a Word document in APA style. Please use the following following instructions to view our online APA guide.