The current status is that Redstar has shut down and Ashmark has identified a new supplier. Our task is to implement the appropriate Sourcing Business Model with the new supplier.

 Ashmark Corporation: Dealing with Supply Disruption

by Brent B. Moritz and Christopher W. Craighead

Part1: Ashmark's Procurement Maturity Level.

Q1.1 We first need to check the Buyer company's Procurement Maturity Level. What level was Ashmark's Procurement Maturity Level? What key points (from the case) lead you to this?

Q1.2 Ashmark's procurement maturity level is not where we want it to be. Procurement Maturity is measured based on 3 categories. What specific changes should they implement in each of these three categories to raise their Procurement Maturity Level (the target is Category management)?

Part2: Determining the appropriate Sourcing Business Model.

We now need to identify the best sourcing model to use. For this, we focus on the 4 steps of the Business Model Mapping. For Ashmark, we consider step 1 to be completed as the case tells us that we need to buy this group of components (Spend category) from the supplier.

Q2.1 In step 2, we identify the appropriate Relationship model? What Relationship model do you recommend? What key points (from the case) lead you to recommend this?

Q2.2 For the Economic model (step 3), Prof Weele recommends that buyers "should always strive for an output or outcome specification". What are some benefits of these two Economic models?

Q2.3 Based on the Relationship model and Economic model, what is the appropriate Sourcing Business Model? What are some of the benefits of this model?

Part3: Implementing the model

After considering the recommendations from a number of sources, Tilden has decided to implement either the Performance based/Managed services model or the Vested Business model.

Based on the information in the case, and the textbook chapter on the Sourcing Business Model selected, provide a detailed plan for implementing the model.

Q3.1 What are the key steps and considerations for Askmark while implementing this sourcing model?

Q3.2 Identify Ashmark's strengths (Changes) that would help them implement this.

Q3.3 Identify potential challenges and propose possible solutions.

Q3.4 Highlight key points/potential risks for Tilden and his team to keep track of.