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Sourcing Strategy is about sourcing as a long term strategic activity. Myopic purchasing management stops short with describing functional procedures and procedural innovations such as online order processing.
The goal of this book is not merely to document sourcing strategy, but to provide the tools to determine it. Therefore, rather than merely describe common sourcing processes, the book takes a normative approach to sourcing strategy. It argues for a rational, complete and integrated process view. It supports its recommendations with logical arguments from an interdisciplinary and analytical approach grounded in microeconomics, law and business strategy.
Part 1 of the book explains the economic and business principles that underlie sourcing strategies. It derives policies that guide viable strategies to meet sourcing goals. Part 2 applies these to creative designs for standard sourcing scenarios.
List of contents
Principles and Policy.- Sourcing Strategy.- Outsourcing.- Architecture and Processes.- Sourcing Goals and Objectives.- The Government Sourcing Environment.- Costs and Performance Risks.- Contracts and Incentives.- Source selection.- Supplier Strategies.- Sourcing Reports and Data.- Design.- Foundations of sourcing analysis.- Sourcing Design Elements.- Risks and Rewards of Multiple Sourcing.- Capacity Constraints and Pricing.- Syndicates, Risk and Demand Uncertainty.- Risks and Resource Sharing.- Selection and Incentives for Innovation: LIC.- Selection and Incentives for Innovation: Yardstick Contracts.
Summary
Sourcing Strategy is about sourcing as a long term strategic activity. Myopic purchasing management stops short with describing functional procedures and procedural innovations such as online order processing.
The goal of this book is not merely to document sourcing strategy, but to provide the tools to determine it. Therefore, rather than merely describe common sourcing processes, the book takes a normative approach to sourcing strategy. It argues for a rational, complete and integrated process view. It supports its recommendations with logical arguments from an interdisciplinary and analytical approach grounded in microeconomics, law and business strategy.
Part 1 of the book explains the economic and business principles that underlie sourcing strategies. It derives policies that guide viable strategies to meet sourcing goals. Part 2 applies these to creative designs for standard sourcing scenarios.
