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What are the risks of outsourcing this product and service

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Take a particular industry – perhaps one that you are working in or have worked in, or one that you would like to know more about – and answer the following questions related to sourcing and sustainability. In your responses, use a combination of concepts illustrated in the chapters and your own knowledge (or research) of the particular industry.

a. What is one way that this industry could (or is required to) focus on sustainability? Why? Which of the three pillars of sustainability does that effort fall under? Which supply chain driver is it most closely linked to? What are the primary barriers to the industry implementing that sustainable focus?

b. For this particular industry, what is one product or service that would be good to keep in house and one that would be good to outsource? Why? In which categories on the “Product Categorization by Value and Criticality Matrix” would you put these two products/services? (Matrix available on page 463 of version 6 or slide 25 in the module) In which specific ways can the supplier increase supply chain surplus for the product/service?

c. For this and the following questions, consider the outsourced product/service only: What type of supplier should be used? (Think about capabilities, responsiveness vs. efficiency, and location)

d. What are the risks of outsourcing this product/service? (Be specific.)

e. Beyond the purchase price, what are some other factors in the total cost of ownership for this product/service?

Reference no: EM131770287

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