Resources: Supply Chain Management: Strategy, Planning, and Operation, Ch. 15, Sourcing Strategy Grading Guide
Read Sections 15.2 In-House or Outsource? on pages 435-441, and 15.9 Making Sourcing Decisions in Practice on pages 463-465 in the Supply Chain Management: Strategy, Planning, and Operation textbook.
Write a 700- to 1,050-word paper that addresses the following:
- Provide a detailed overview of the advantages of outsourcing and aggregation, and describe two to three cases of when it may be most effective for a company to pursue outsourcing opportunities.
- Evaluate potential risks to using a third party within one’s supply chain, as well as possible consequences for a company’s supply chain if things were to go wrong.
- Select a company of your choosing, and determine one or two products or services that may benefit from outsourced production (e.g. a product with high production costs, high warehousing costs, 24/7 customer service needs, website development/maintenance).
- Determine the product lead time needed, and develop a timeline from the initiation of the project to project completion.
- Research third parties for possible outsourcing opportunities, and appraise the third party’s estimated labor and production costs, warehousing capacity, transportation modes/channels, quality assurance practices, and other relevant factors as applicable.
- Assess potential problems and solutions in each of these areas.
- Determine whether or not it makes sense for the company to outsource its product or service based upon a comparison of all of the variables involved, and summarize your conclusions using relevant examples.
Format your paper according to APA guidelines.
Cite your references to support your paper.
Submit your assignment.
Note: Grades are awarded based upon individual contributions to the Learning Team assignment. Each Learning Team member receives a grade based upon his/her contributions to the team assignment. Not all students may receive the same grade for the team assignment
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