Guidelines for current and all future assignments
Only scholarly articles to be sourced.
Both In Text reference and main reference list is must even if one sentence or just an idea from the article is sourced.
Only Harvard referencing style.
Name of the Textbook is mentioned in assignment task email, almost 50% - 70% of material is available in that textbook for this assignment.
Some Journals are also mentioned in the assignment task email which will be very helpful for current assignment.
Please go through Assignment Task email very thoroughly to understand what is demanded in this assignment in terms of STRATEGIC PROCUREMENT.
Since this assignment is 2500 word assignment, around 600 words for each case study can be divided.
1. Insights into the process of changing sourcing strategies
Following research is based on the assessment of effective sourcing strategies that is required for better supply management. It includes overview and discussion alongside theoretical analysis. Similarly, topic learning is briefed with proper strategic sourcing outcomes for developing organisational condition. Moreover, supplier evaluation and different sourcing is analysed through this critique.
Current critique has identified procedures of different sourcing that have led single sourcing into multiple sourcing. Faes and Matthyssens (2009, p. 245) commented that, effective sourcing strategies incur advantages for firms alongside various disadvantageous factors. In this regard, buyer’s portfolio matrix is being employed inside the topic that has helped in linking product life cycle with market. Additionally, in order to grab competitive advantage from market, incorporation of strategic sourcing is required as it enables organisation profound vision regarding necessary information.
In order to improve supplier base of organisation, following literature has reviewed major strategies of source management. Besides this, single sourcing as well as multiple sourcing is being highlighted in it. Kim, Suresh and Kocabasoglu-Hillmer (2015, p. 15) opined that, effective strategies for sourcing can develop performance of firm. Hence, current literature has focused on the developing sourcing strategies for betterment of organisations. Similarly, interlink among different entities that are engaged with strategic sourcing is also demonstrated in this literature in order to implement effective change.
On the other hand, different strategic sourcing changes are highlighted through qualitative research in order to gather viable information. Jensen (2017, p. 153) conveyed that, in order to improve management services it is essential to incorporate strategic sourcing methods. In this regard, supplier base is also evaluated for applying cost-cutting techniques inside company. Moreover, buyer’s are key factor for organisational orientation thus buyers requirements have been focused throughout the study.
In order to develop better understanding regarding quality factor it is vital implementing strategic sourcing methods. Strategic sourcing can be considered as information bucket whereby organisation can identify stakeholder requirements. Faes and Matthyssens (2009, p. 246) commented that, single source reflects loyalty towards suppliers whereas same order is distributed among different supplier organisations in case of multiple sourcing. Hence, it is essential understanding suitable sourcing approach for firm in order to grab demographic advantage.
However, single sourcing is much preferable to firms due to its cost-effective structure. Kotula et al. (2015, p. 243) argued that, inclusion of single sourcing may affect marketing knowledge as single source acts as information bucket in such scenario. It is obvious maintaining synchronization among information for firm development. Since buyer’s buying nature decides organisational performance, thus it is important to gather in-depth knowledge regarding customer needs. In such context, inclusion of effective sourcing strategy can benefit the supplier base selection of firm.
Following research sheds light on different approaches of sourcing strategies that can accelerate business effectively. Ten different cases have been analysed by researchers during the study whereby it has been observed that single sourcing has emerged preferable to multiple sourcing. Faes and Matthyssens (2009, p. 248) opined that, sourcing strategy requires change for mitigating future supply threats. Hence, using effective sourcing inside firm, quality of products can be developed as per consumer needs.
Apart from this, it is obvious to analyse benefits and drawbacks of change implementation. Kim, Suresh and Kocabasoglu-Hillmer (2015, p. 11) argued that, standardisation of products is required for better supply management. However, change implementation requires suffice cash flow and insufficient cash flow can emerge as risk for firm. Following research clearly states that seven out of ten cases have gone in favor of single sourcing. On the contrary, remaining three cases have supported multiple sourcing. Thus, proper assessment of apt sourcing approach is vital in this regard whereby service quality can be improved.
From the above analysis, it has been observed that single sourcing strategy is beneficial to multiple under the vision of seven different case studies. However, both single and multiple sourcing have distinguished advantages and drawbacks. Hence, identification of proper approach is essential in context of business progress.
Assessing previous era it can be compared that buying behavior of people has changes rapidly. Following research sheds light on managerial challenges that occurs during sourcing. Detailed overview of topic alongside discussion is provided inside it. Similarly, future scopes and in-depth analysis of literature is furnished in this critique.
In this competitive era, organisations have gathered intense knowledge regarding business network. As stated by Freytag and Mikkelsen (2007, p. 187), decision making of firms has improved with changing sourcing strategies of firms. Different managerial challenges like language barrier, method of payment, shipping, cultural variance, supply chain and cash flow is considered as prime challenges for overseas sourcing. In this regard, a clear line has been drawn between external and internal sourcing inside following research to categorise best approach for challenge mitigation.
Current companies are well aware about business values and networks and in this regard, sourcing strategies have snatched attention of organisations decision-making. Nudurupati et al. (2015, p. 253) stated that, effective strategic sourcing is essential for value co-creation. Empirical analysis of data gathered from managers has forwarded the vision of literature whereby importance of challenges assessment is conveyed through this study. Likewise, supplier relations are highlighted in this research for improved strategies of sourcing.
Language may occur as a threat for organisational prospect as complex issues arise for unawareness of language. Freytag and Mikkelsen (2007, p. 189) argued inside study that, without addressing challenges efficiently, business relations may be terminated. Relationship is playing major role in business prospect thus unawareness about business partner’s requirement can destroy progress of company. Hence, during sourcing procedure it is vital to assess viability of the approach whereby organisations can develop their condition.
Understanding challenges for organisational betterment is prime criteria of every firm and four key challenges are focused inside following research. Since supplier power is a threat for company, thus maintaining small and effective supplier base is highlighted here. Freytag and Mikkelsen (2007, p. 187) proposed that, contracts and negotiation tools are vital requirements for firm progress. Hence, companies need proper understanding regarding policy implementations in order to develop their position.
However, resource theory has been considered as key modifier of business throughout this literature. Eltantawy, Giunipero and Handfield (2014, p. 769) opined that, with the application of appropriate strategic sourcing approach it is easy to improve business orientation. Every business needs following specific values for development and assessment of apt network is necessary for it. Managers are heart of firm thus in order to enhance organisational capability it is essential to select effective manager for the firm. Hence, managerial efforts are also focused in this study during the research for subduing managerial threats.
Effective business relationship has huge contribution in business improvement thus; it is obvious to maintain effective relationship. As commented by Jensen (2017, p. 157), suppliers alongside buyer’s are essential stakeholders of organisation. In order to deliver appropriate services to clients, it is obvious to maintain good relationship with suppliers. Hence, timely payment of dues can be considered as an effective procedure for relationship management. Additionally, back-sourcing is also highlighted in this critique for better management of strategic sourcing.
Besides this, every supplier desires dignity from companies thus it is vital understanding supplier demands for avoiding relationship termination. Suppliers collect information from market thus; it is wise to gather information from suppliers regarding market trends. Freytag and Mikkelsen (2007, p. 193) viewed that, buyers bargaining power can be elevated using ineffective relationship between supplier and manager. Hence, for strategic sourcing it is obvious to eliminate challenges regarding relationship. This apt relationship maintenance can develop the sourcing strategies of organisations.
From the above research, it can be observed that different challenges are emerging as major threats for strategic sourcing of firm. Relationship maintenance can be considered as prime challenge since improper relationship can ruin business. In this regard, through assessment of strategic sourcing is being evaluated in this following study for developing organisational position.
Strategic sourcing is required in a business for better management of supply chain. Hence, following study is focused about assessing different business models of strategic sourcing. Understanding complex market is key aspect of this research. In this context, further application of this research is defined in this critique alongside proper analysis.
Strategic outsourcing is prime requirement of current business thus holistic approaches for better sourcing is focused in this study. Alongside, seven models of sourcing is described in this study that are essential for developing sourcing strategies. As observed by Vitasek (2016, p. 126), supplier and buyer are two key stakeholders of every business thus understanding perfect approaches for these stakeholders is vital. Hence, using these absolute business models and devising ideas from them it can improve sustainability of business.
Contract papers are created for better understanding of business desire and in this regard, contract negotiation is being focused in this study. Besides this, strategic requirements of clients and suppliers may incur threats in case of lack of understanding. Kotula et al. (2015, p. 243) opined that, ineffective supplier selection may reduce organisational acceptance due to the emergence of misalignment. Hence, companies need to gather profound knowledge regarding effective supplier selection procedure for better performance.
On the other hand, business models are established for organisational performance elevation. Transaction-based model can be considered as widely appreciated conventional model of business. Similar to this, sourcing-based models are designed for effective organisational orientation. It is important to assess performance of organisation before initiating contract (Knight et al. 2017, p. 99). As for an example, collaborative movements of market giants can benefit organisations equally. Hence, alongside collaborative outsourcing, performance-based contracting is also highlighted in this critique.
In order to develop the strategic sourcing it is obvious to incorporate effective ideas from strategic business models. In this regard, two different transactional models are demonstrated inside the literature. These two models are Basic provider and Approved provider. Vitasek (2016, p. 132) opined that, relational models also contribute in effective sourcing strategies. Since business entirely depends on proper relationship management, thus using relationship models companies can prospect significantly. Preferred provider can be considered as an effective relationship model that is being elicited inside the literature.
Likewise, Performance-based model is highlighted here alongside Vested business that are required for better relationship management of firm. Eltantawy, Giunipero and Handfield (2014, p. 771) started that, it is vital to understand the implications of sourcing for better strategic sourcing. Investment is another essential factor for business orientation. In this context, Shared services and Equity partnership are highlighted in this following literature for better investment models of business.
Following learning is offering knowledge regarding modern procurement of business. From this literature, application of different strategic models can be observed that can improve business wisely. Vitasek (2016, p. 132) opined that, Basic provider can help in determining cost-effective transaction for firm. In addition, using this model organisations can maintain their products standard. In a similar vein, set of criteria can be met using Approved provider that is also requirement of every business.
However, understanding economic criteria is essential for business orientation and using Preferred provider this criterion can be attained by firms. As argued by Kotula et al. (2015, p. 245), business success rate is solely dependent on the sourcing strategy. Hence, Performance-based approach can help in the identification of buyers and suppliers requirement. Moreover, Vested sourcing is vital for collaborative sourcing whereas Shared service model eliminates business complexity. Additionally, Equity partnership is another effective model for business orientation and it is suitable for inadequate internal capabilities maintenance.
From the analysis, it can be observed that, seven different business models are highlighted in this research for improving strategic sourcing. Complex market trends are also identified throughout this literature for mitigating sourcing challenges. Moreover, by defining these models following research has conveyed better relationship management approaches that are vital for performance elevation of firm.
It is vital to understand procurement needs of firm that can be achieved through the application of strategic sourcing. This study sheds light on factors related to strategic sourcing. Apart from this, thorough analysis of strategic sourcing is being conducted in this literature for better response to the future business requirements.
Increasing change in buying behavior of firm is being highlighted in this current research. Anderson & Katz (1998, p. 1) stated that, it is important to understand requirements of organisation before purchasing products. The way a company purchases products and services is mandatory understanding for betterment of firm. Since competition is elevating globally thus to survive in this competitive era, it is obvious to employ effective cost cutting strategies. Hence, following research has also highlighted the impact of strategic sourcing on organisational development.
As described earlier, strategic sourcing is a procurement procedure that develops buying activities of firm. Hence, strategic sourcing can be re-defined as a service solution for better relationship management. Nudurupati et al. (2015, p. 254) observed that, it is important to understand value co-creation for developing business. As for an example, using strategic sourcing it is possible to optimize supply chain of firm. Hence, following systematic framework for better sourcing companies can attain their desired objectives.
Along with this, it is important for firms to maintain their supply base and in this regard, effective product pricing is vital need. In order to intensify consumer base it is evident to provide merit quality services to their clients (Anderson & Katz 1998, p. 3). Thus incorporation of procurement pathways can be considered as ideal solution for the companies to improve their strategic sourcing. Moreover, organisations can enhance their value inside society using this effective strategic management.
Current research is based on the assessment of strategic sourcing and its requirement for organisational development. Organisational excellence can be attained using strategic sourcing as it improves relationship with suppliers and buyers. Jensen (2017, p. 155) commented that, effective strategies of sourcing can generate features for business whereby business can improve quality of services. In this manner, transparency of business can be uplifted by companies and companies can attain their desired goals.
Similarly, better strategic sourcing can provide opportunity regarding supply base improvement. As assessed by Anderson and Katz (1998, p. 10), customers are asset of firm thus effective client management can be achieved through proper employment of strategic sourcing. Likewise, every organisation faces several competitive challenges that can affect their efficiency. Hence, following research has devised ideas regarding corporate efficiency management that is key business development factor. However, along with clients changing requirements business needs appropriate modification. Due to this reason, change management is also highlighted inside this literature.
Proper development of strategic sourcing can elevate performance of firm whereby organisation can assess its current expense. Similarly, supply markets can also be evaluated using appropriate strategic sourcing. Kim, Suresh and Kocabasoglu-Hillmer (2015, p. 13) viewed that, it is mandatory to understand suitable suppliers for company. Hence, using strategic sourcing it is easier for organisations to meet this goal of company. Moreover, without modifying supply structure companies cannot participate in the long-run of business. Due to this, supply structure modification is also learned through the following critique.
Alongside, business requires better ambience for value growth and this objective can be achieved by enhancing profit zones. However, using strategic procurement companies can employ improved design in their business whereby innovativeness of firm can be elevated. Anderson and Katz (1998, p. 12) opined that, various organisations like Dell, General Electric have improved innovativeness by employing strategic procurement. Thus, strategic procurement can be considered as a pathway for improving business.
From the above analysis, it can be concluded that organisations require better business strategies to remain competitive. It can be observed that innovativeness of organisation can be enhanced using strategic procurement. Apart from this, suppliers and buyers requirement can be evaluated through strategic sourcing. Thus, better sourcing methods are highlighted in this research for developing organisational performance.
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Pages: 4
Words: 890