Should we enter into an alliance and if so what type

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Should we enter into an alliance, and if so, what type, or work privately? Policy and Procedure Manual T /F - Poor internal compliance with supply processes may indicate that internal customers do not trust the supply process or the suppliers to live up to promises. Online auctions have been most effective when: c. the market conditions favor buyers. Chapter 5 – Make or Buy, Insourcing and Outsourcing Make or Buy New management trends favoring flexibility and focus on corporate strengths, closeness to the customer, and increased emphasis on productivity and competitiveness reinforce the idea of buying outside. Reasons to Make Instead of Buy Quantities are too small and/or no supplier is interested Quality requirements are too exacting or special processing methods needed Greater assurance of supply Closer coordination of supply and demand Preserve technological secrets Lower cost To take advantage of unused capacity Keep our capacity utilization high and outsource the rest
Avoid supply dependency Reduce risk Competitive, political, social or environmental factors Distance from the closest available supplier is too great Market potential for the product or service is expanding rapidly Forecasts of future shortages in the market or rising prices Reasons to Buy Instead of Make Lack of managerial or technical experience Lack of production capacity Reduce risk Customer preference for a particular brand Challenges of maintaining technological leadership for noncore activity Outsourcing is difficult to reverse Cost accuracy Flexibility Insufficient volume to justify in-house production Forecasts show great demand and/or technological uncertainty Availability of a highly capable supplier Desire to stay lean Buying outside may open up markets The ability to bring a product or service to market faster Superior supply management expertise Grey zone This middle ground may be particularly useful for testing and learning without having to make the full commitment to make or buy. The gray zone in make or buy may offer valuable opportunities or superior options for both purchaser and supplier . Subcontracting Insourcing Most obvious reason is when an existing source of supply goes out of business or drops a product or service line and no other supplier is available. A sudden massive increase in price, the purchase of a sole source by a competitor, political events and regulatory changes, or a lack of supply of a key raw material or component required for the manufacture of the purchased product. /Developed a unique process quality, cost, delivery, flexibility, supply’s capability to provide the required inputs.

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