Toshiba 3 companies occasionally search for one source for it solutions. Single sourcing the customer chooses a single supplier to provide the entire set of services that it wishes to outsource, and relies on that supplier to carry responsibility for the outsourced services throughout the. According to the accentures survey 2005 230 global supply chain executives plan to double their lowcost country sourcing activities in the next three years. Nov 11, 2004 depending one a single source for supply has risks as well including. Simulationbased single vs dual sourcing analysis in the supply. Apply to supply chain specialist, supply chain manager, supply chain analyst and more. His research interests focus on supply management, including supply chain sourcing strategies and relationships, supply management skills and competencies, risk management, global sourcing and epurchasing.
Pdf the role of strategic sourcing on global supply chain. Innovation through acquisition single enterprise information system dynamic replenishment, direct fulfillment, merge in transit. It is concerned with what needs to be purchased, why, when and where. Gain a thorough understanding of the critical role of purchasing in the supply chain with one of todays leadingedge strategy and purchasing books sourcing and supply chain management, 5e, international edition. However the risk analysis of both these approaches follows stereotypes. The supply chain logistics course will cover transportation, warehousing. Some of the sourcing strategies that are used in supply chain management today include. Whether a company chooses to multisource or to single source will have an impact. Supply chain resilience for single and multiple sourcing in the presence of disruption risks jafar namdar, xueping li. In our online class mastering purchasing fundamentals, we cover types of suppliers and supplier choice methodologies. The emergence of supply chain risk mitigation as a key issue has caused many procurement managers to reassess their reliance on single sourcing strategies. He has published more than 65 articles in various academic journals. Here are the summarized top reasons for single sourcing that i shared with him. Product tracking refers to the tracing of unit level items i.
Input your email to sign up, or if you already have an account, log in here. There are a number of current trends and approaches that managers and practitioner of a supply chain may consider to achieve a competitive edge and single sourcing is one of them. Single sourcing is also known as singlesource publishing because it uses a sole resource for using and reusing information. Single sourcing has many benefits when it comes to supply chain management. The process of producing multiple outputs from one single source of information. This means that focus on sourcing process is the key element in order to make the supply chain. It is often opted for with the purpose of reducing material costs. Single sourcing can also deliver lower production costs, which produces better value for your customers, better efficiencies and more control.
Supplyon sourcing provides you with a structured overview of all requests received, quotations issued and award decisions. Sourcing strategies and their implementation in the. Jul 31, 2019 in publishing single sourcing is defined as the usage of one solitary document to create several other documents. Supply chain planners have thousands of skus, production facilities, factories, and distribution centers to factor into their decisions. Should you choose a single or multiple supplier strategy.
The supply chain management specialization is made up of four basic courses in logistics, operations, planning, and sourcing, followed by a capstone course in supply chain management strategy. In recent decades, purchasing and supply management have become. This paper investigates the use of sourcing strategies to achieve supply chain resilience under disruptions. This section describes the different characteristics of single sourcing and multi sourcing. The entire set of business process required to purchase goods and services. One of the classic conundrums that many supply chains face is whether to dual or single source particular inventory items. When the suppliers diversify their own sources of input that is, when 12, the likelihood that each single supplier faces a shortage is reduced. Pdf supply chain resilience for single and multiple. The concept is created to help supply chain managers and practitioners to improve, develop and implement strategic sourcing strategies. Also called the procurement, is the process by which companies acquire raw materials, components, product, services or other resources from suppliers to execute their operations. The supply chain logistics course will cover transportation, warehousing and inventory, and logistics network design. Supply chain resilience for single and multiple sourcing in the presence of disruption risks article pdf available in international journal of production research september 2017 with 473 reads.
However, it is conceptually easier to imagine a chain as a river, originating from a source, moving downstream and terminating at a sink. Oct 18, 2015 4 reasons why single sourcing is still good strategy. Single enterprise information system dynamic replenishment, direct fulfillment. In purchasing sole sourcing take place when only one supplier for the required item is available, whereas with single sourcing a particular supplier is purposefully chosen by the buying organisation, even when other suppliers are available larson and kulchitsky, 1998.
Sourcing is a critical activity used at both tactical and strategic levels. Ford 4 in 1998, supply problems at ford resulted in the temporary, threeday shutdown of the fiesta and puma manufacturing facilities in cologne and dagenham, germany. Pros and cons of dual sourcing in procurement supplychain. Well as a printer i want my customer to have single source purchasing from me. Before embarking on a change in sourcing strategy, it is important to evaluate the supplier relationships for each category of good and assess supply chain risk holistically, across all risk categories. Sole sourcing in purchasing sole sourcing take place when only one supplier for the required item is available, whereas with single sourcing a particular supplier is purposefully chosen by the buying organisation, even when other suppliers are available larson and kulchitsky, 1998. The supply chain extends upstream to the sourcing of raw. One thought on the risks of single sourcing cary wheeler march 23, 2011. We hear and read a great deal of information in our supply chain profession about strategic sourcing. Top content on sourcing as selected by the supply chain brief community. Apply to supply chain manager, supply chain specialist, senior supply chain specialist and more.
As an example lets look at abc manufacturing ltd who supply the aerospace. Pdf supply chain resilience for single and multiple sourcing in the. Benefits and risks of single sourcing scm supply chain. Single and multiple sourcing are the more frequently discussed approaches in supply risk management khan et al. It can serve to optimize your companys entire supply chain. Strategy in which the company depends on a single company for all or almost all of a particular product. The goal, of course, is to build maximum agility and flexibility into your supply chain management. This section describes the different characteristics of single sourcing and multisourcing. Other dimensions must be considered and balanced when designing the supply chain, including. The role of strategic sourcing in global supply chain competitiveness the sourcing process may be subject to several diff erent types of risks as presented in table 2. All stakeholders in the ecosystem can 1 access the provenance, 2 authenticate items, and 3 prove compliance. Using the above analogy, the supply chain can be considered the entire chair, while procurement and sourcing are parts of the chair.
In this paper we analyze single period, single product sourcing decisions under demand uncertainty. Then there is a third option of multiple suppliers providing an inventory item. Multisourcing and miscoordination in supply chain networks. Changing sourcing strategies to make the most of them imp group. Sourcing is the entire set of business processes required to purchase goods and services. Hence implementation is often hampered by manual and slow. Sourcing strategy scm supply chain resource cooperative. Consulting firm pwc found that companies with bestinclass global supply chain management achieve nearly 50 percent higher sales growth than others. Finally, cost is not the only element of a supply chains performance, as well discuss later. Supply chain resilience for single and multiple sourcing in. Global supply chain sourcing strategy american express. Engel, vice president project services the procurement centre 76230111 ext.
Dual sourcing as its name implies is where two suppliers provide an inventory item. Single sourcing decisions are usually made at strategic and top management level where purchasing and supply managers need to determine whether and how much value single source relationships add leenders et al. Nov 22, 2007 today, a student asked for more reasons why an organization may consider single sourcing beyond what is already covered in the class andor in a more summarized format. Pdf the role of strategic sourcing on global supply. Single versus multiple supplier sourcing strategies. A company that is selected to have 100% of the business for a part although alternate suppliers are available. Raw material sourcing is one of these opportunities to minimize risks, reduce operating expenses and ensure continued operations in the face of a supply chain disruption. All messages are transmitted electronically and securely via our online platform, thereby preventing media disruptions. These risks are often seen as a risk of single sourcing. Ive been in a variety of sessions over the years where with the illustrious use of hindsight dual sourcing wouldve saved the buying company large amounts of upset, but on the flip side, i have also witnessed its use reducing buying power, without addressing the. Jun, 2016 logistics procurement strategies also vary by transportation mode, whether truckload sourcing, ltl sourcing, ocean sourcing, air freight sourcing, or multimodal transportation procurement. In particular, supply disruption results in excessive downtime of production resources, upstream and downstream supply chain repercussions, and eventually a loss in the market value of the. Understanding your value chain, and how china fits into it, can lead to tremendous tax savings. Successful single sourcing allows you to create and maintain one single set of information and yet produce a range of different outputs.
Pdf this paper investigates the use of sourcing strategies to achieve supply chain resilience under disruptions. Single suppliers present companies a chance to reduce procurement expenses through material. Sourcing strategy analysis in light of supply chain sc. Lower pricing due to consolidation of all requirements with one supplier. Nothing frustrates me more than attempting to capture harvest or farm an existing accounts entire printing needs, than to be told by the customer, oh we could never give you all our printing, we need to keep you printers. When two chains combine supply chain meets blockchain. The focus of this paper is placed on evaluating the impacts of supply disruption risks on the choice between the famous single and dual sourcing methods in a twostage supply chain with a nonstationary and pricesensitive demand.
The sole sourcing helps to optimize the companys supply chain, lower production costs and product better value for shareholders and customers. A summary of supply chain risks that companies must now manage is presented in figure 1 below. Depending one a single source for supply has risks as well including. The user can use this single paper or document in different formats to create manual or online texts or papers.
Purchasing singlesole source goods effectively whittington. Transportation buyers should look at both price and nonprice bid information from carriers, in order to make the best possible and lowest risk decision. Strategic sourcing is an approach to supply chain management that formalizes the way information is gathered and used so that an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace. This turnkey solution provides current and complete coverage that makes it not only a useful book, but also a valuable professional reference tool. Pdf sourcing strategy analysis in the settings of supply chain sc flexibility in regard to single vs. In this paper we analyze single period, single product. Outsourcing results in the supply chain functions being performed by a third party. Patrick is a widelypublished writer and editor who has spent most of his career. As supply chains become more extended and companies depend more on outside companies to provide goods and services, companies are keenly aware of disruptions in the supply chain.
What is strategic sourcing and why is it important. Today, a student asked for more reasons why an organization may consider single sourcing beyond what is already covered in the class andor in a more summarized format. If you are in supply chain field, you should know that its a major decision whether you outsource your productionfunction or perform inhouse. The term single sourcing is used to describe where an inventory item is provided by one supplier. Supply chain brain supply chain news, analysis, videos. Supply chain resilience for single and multiple sourcing in the. Supply chain collaboration vendor managed inventory visibility analytics intelligence supply chain analytics transport management transport consolidation sourcetoapqp sourcing auctions contract management procurement catalog management supplier management master data management compliance management quality management advanced product. Having a single source means there is less work involved in qualifying the source and probably less administrative effort to be expended.
Supply chain resilience for single and multiple sourcing. Browse sourcing content selected by the supply chain brief community. Single sourcing is also known as single source publishing because it uses a sole resource for using and reusing information. In publishing single sourcing is defined as the usage of one solitary document to create several other documents. Multisourcing and miscoordination in supply chain networks 4 in order to address the misalignment of incentives between the di erent tiers of the supply chain, including segmenting or regionalizing the chain, standardizing component parts, or o ering better nancial terms in their bilateral procurement. Optimizer in anaplan makes it easy to fulfill global demand in the most efficient and profitable way possible, leading to lower waste, better service levels, and happier customers. This is a real advantage when dealing with a highly technical product requiring significant engineering to qualify it or use it. Procurement some of the tasks involved in procurement include developing standards of quality, financing purchases, negotiating price, buying goods, inventory control and disposal of waste products like packaging. Multi sourcing and miscoordination in supply chain networks 4 in order to address the misalignment of incentives between the di erent tiers of the supply chain, including segmenting or regionalizing the chain, standardizing component parts, or o ering better nancial terms in their bilateral procurement. State of strategic transportation sourcing supply chain. A method whereby a purchased part is supplied by only one supplier. When evaluating the use of global sourcing and single vendor sourcing, many procurement managers have become very concerned about their risk exposure and are seeking options to mitigate risk.
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