Strategic sourcing thesis

A discussion-based strategic sourcing process utilizing a holistic range of factors is proposed to test whether an expensive, complex, and integrated system like a composite airplane wing should be outsourced or if it should Strategic sourcing thesis designed and produced internally.

The first layer is divided into four general purchasing strategies: This workshop-based strategy development process develops weighted factors through a structured, cross-functional process where Strategic sourcing thesis proposals can be evaluated based on their Strategic sourcing thesis against a set of quantitative and qualitative factors such as cost, Strategic sourcing thesis, flow, knowledge management, stability, and risk.

Summary I am a mechanical engineer, and I like structure. Imagine your company at the center of these five forces and analyze your position. It was so logical and self-explanatory.

Like most of you, I found several of those methods to feel quite familiar. Competitive power can change at any point in time, especially when there are changes in the market.

In addition to strong competition from Airbus and other emergent companies, Boeing is faced with the challenge of reducing financial risk and placing work internationally to offset foreign sales obligations. The goal is to move step-by-step towards the bottom right quadrant.

Careful assumptions were made and data collected to ensure a realistic scenario for a future single-aisle plane. In the mean time, you can go to their website to explore this method more in depth. Aerospace firms continue to outsource increasingly complex components and systems for access to talent, lower costs, and global presence.

In Chapter 4, I will try to explain how I use this great tool from A. Leaders for Manufacturing Program. But at the time, I felt lost as to what methods to use when and what should the next step be after one method has already been carried out. Michael Porter described five competitive forces: This thesis is based on a six-month internship study with the Future Production System team based in Seattle, WA and it examines the strategic sourcing decision process at Boeing Commercial Airplanes.

There are quite a few methods, so you have a lot to choose from if you have to find the proper method at once. Massachusetts Institute of Technology Date Issued: Drilling down from layer one to three helps you find your way to the strategy that best fits your situation.

The documented baseline wing sourcing strategy includes recommendations for proximity, design integration, and production responsibilities. During boom times, the supplier usually has the stronger bargaining power, but during a recession, the opposite occurs and customer bargaining power increases.

The organization has recognized a need for an integrated framework to consistently make sourcing decisions that limits subjectivity and positions the company for continued success.

In order to be successful, you also need to have the power to push the system out of balance, but only if you can do it for your own benefit.

This tool can be used in a variety of business situations, but you can also use it as a guide during your sourcing analysis. Every company has customers, suppliers, and competitors in the industry. However, sustainability is not always enough.

Your company is sustainable if it can find a balance between these forces. On the other hand, buyer power is high when the buyer has multiple alternative sources and can push purchase prices down.

Chapter 4: Strategic Sourcing Methodology

The procurement function is most interested in supplier power and buyer power. These approaches give you a better focus going into the next level of methods. Understanding your position and the power relationship between these forces gives you valuable knowledge about how to implement your strategy.

The development of a baseline sourcing proposal for a composite airplane wing demonstrated the process. Donald Rosenfield and Daniel Whitney. Sloan School of Management.

Next, think of your supplier in the middle of these forces and weigh your power against his.

An integrated strategic sourcing process for complex systems

The third and bottom layer has four methods for each approach, for a total of 64 strategy implementation methods. The second layer helps you clarify the purpose and the long-term goals of the methods below each approach.

Buyer bargaining power is located along the horizontal axis, and on the vertical axis, supplier bargaining power.

Procurement & Sourcing

That is where A. Kearney to find and execute a comprehensive sourcing strategy.Strategic sourcing is the ongoing process of finding the best suppliers and using these supplier relationships to maximize value for an organization.

Every organization has a sourcing program in place whether they know it or not. steps of sourcing thesis will also give suggestions on how to build an organization for sourcing and outline methods of implementing such changes in an operational sourcing department. The Strategic Sourcing process requires an organized approach or method that allows a supply chain function to systematically work on spend areas or processes that can result in cost saving benefits.

This thesis is based on a six-month internship study with the Future Production System team based in Seattle, WA and it examines the strategic sourcing decision process at Boeing Commercial Airplanes.

The research conducted on the impact of strategic sourcing and E-procurement on supply chain performance management is a quantitative research has expressed the relationship between (1) Strategic sourcing (Y1) with supply chain management performance (Z) and (2).

May 23,  · Procurement & Sourcing Comprehensive information about global sourcing and procurement strategies, covering software, spending analysis, order management, supplier evaluation and e-Procurement.


Strategic sourcing thesis
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