Trends+in+Sourcing+aug 30

Trends+in+Sourcing+aug 30 - Trends in Sourcing 1 Making...

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1 Trends in Sourcing Aug 30, 2010
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2 Making Sense of Outsourcing Sanders and Locke (2005)
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Trends affecting outsourcing Payroll Temp Staffing Billing Customer Support Supply Chain Management itself! UPS 3
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Many flavors of Outsourcing Options are dynamic not static Four categories: Out-tasking Co-managed Services Managed Services Business Process Outsourcing (BPO) Primary differentiator is scope of engagement One task (replenishing MRO) versus entire function (SCM) 4
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Out-Tasking Specific task is outsourced Responsibility is specific Example: Hiring a trucking firm to shipments Another Example: 3PL required to handle customer returns 5
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Co-Managed Services Scope of vendor is higher but control still with customer Example: Vendor managed Inventory, with customer making the design decisions Vendor has access to customer assets but overall impact is low as it is non-strategic tasks 6
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Managed Services Vendor responsible for complete end-to- end solution Example: Complete management of client’s transportation needs Example: Complete management of client’s data archiving needs Downside is highly risky as there is heavy dependence on vendor performance 7
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Business Process Outsourcing Vendor responsible for complete end-to- end solution as well as strategic direction Highly customized Integration after acquisition – BP merger with ARCO and Amoco assisted by Accenture 8
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Beyond Scope of Function . . Strategic Importance of Function Tactical ------ Strategic Degree of Customization Standardized ----- Customized Nature of Client-Vendor Relationship Transactional ------ Colloborative 9
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Aligning Motives for Outsourcing to Option Motives: Solving a business problem Creating a competitive advantage Strategic partnership with world class provider
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This note was uploaded on 07/02/2011 for the course MGSC 487 taught by Professor Jayaram during the Spring '10 term at South Carolina.

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Trends+in+Sourcing+aug 30 - Trends in Sourcing 1 Making...

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