six sourcing strategies ( 1. Many Supplier, 2. Few supplier, 3. Verticle integra

Question

six sourcing strategies ( 1. Many Supplier, 2. Few supplier, 3. Verticle integration, 4. Joint venture, 5. Keiretsu networks, 6. Virtual companies) It is important to know and be able to apply these strategies correctly to a business.

For this week write a paper that examines the six supplier strategies and applies each strategy to a specific type of business.

Assignment format: Separate the paper into sections by strategy. and how to properly apply it to the type you business you choose. (choose only one business and apply all strategies to the same business) "Six strategies to one business that you choose is the specific way to write the assignment"

Explanation / Answer

Many Suppliers:-

Few Suppliers:-

            In this case clients (Buyer) build the relationship with supplier, where they follow the terms and conditions of product quality to be supplied under official contract and that contract will be with other selected suppliers also to keep an option. They will have the trade secrets and alliance to keep them unique in market.

Suppliers participate in JIT programs and contribute in advancement of technical experience. In this case the cost is major thing where suppliers change cost of product in competitive manner and their number is very large.

Vertical Integration:-

In this type of sourcing the integration will be toward customer or with the supplier. As per need product demand the cost and inventory could be improved. It will be not secure because of rapid change in industry in term of technology going on.

Joint Venture:-

It looks official where the formal collaboration will be formed based on skills security and cost. There will be cooperation with client without diluting its brand.

Keiretsu Networks:-

It represents the link in between few suppliers and vertical integration. They provide the financial support to through loans and ownership. It helps in building the long term relationship with clients and sustainable delivery of product.

Virtual Companies: - It represents the various options to provide the services on demand from contracted suppliers. They are more easily adaptable to change as per market demand. This change brings the change in time period of contract that may be for long term or short term.

IMPLIMENATION OF STATERGIES

As per business concern we require the following things in the business which are given below:-

There should be a supplier who can provide us good quality of product and moderate price for longer duration.

Advancement in technology takes place from time to time so during contract manufacturing it may be requirement of improvement. So other vendor provides that thing in reasonable cost then we should make contract with them as per organization term and policies. Third thing is the impact of loss which can be dissolved if there will be multiple investor at their. So investors and bankers help in resolving the issue loss. In a business all these strategies can be applied. It not linked particular type of business.

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