The Role of Sourcing in a Supply Chain

Discuss factors that affect the decision to outsource a supply chain function. [Pg.433]

Identify dimensions of supplier performance that affect total cost. [Pg.433]

In this chapter, we explore various factors that influence decisions about whether a supply chain activity is performed within the firm or outsourced. We also discuss performance characteristics of suppliers that affect total cost. Our goal is to enable managers to consider all the trade-offs involved when making sourcing decisions to maximize value extracted from every stage of a sourcing relationship. [Pg.433]

We address the outsourcing of supply chain activities by a firm based on the following three questions [Pg.434]

Will the third party increase the supply chain surplus relative to performing the activity [Pg.434]

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