Thinking about sourcing http://www.supplychainquarterly.com/topics/Strategy/scq2

Question

Thinking about sourcing

http://www.supplychainquarterly.com/topics/Strategy/scq200903strategic/

After reading the above short article answer the following questions in the context of a business that you might want to start. The Startup business would be concerning a pet supply store, such as a mom/pop petco or petsmart:

1.What is the trend for the industry that you are considering (cite)?

2. What are the possibilities for sources for your business?

3. Is “insourcing” or local sourcing an option? If so, why, if not, why (cite)?

4. Are there any limited resources that would be needed for your company (cite)?

5. Any government restrictions for your business? Any rebates (cite)?

6. What else did you learn from this short article that might help you create competitive advantage for your business?

Explanation / Answer

1. Trend in the industry ( Pet supply store) is varying demand and procurement strategy. Timely intervention for demand analysis is very much required. While there is some effort to address strategic issues, the primary focus is on driving down prices.

2.Sourcing can be from direct vendors/suppliers from the locality ( Local sourcing) or through agents for pet supply and the leads that we generate via supplemetary resources ( like pet foods, zoological labs, vetenary clincs etc).

3.insourcing is an option as its a starup venture and our prime requirement is to reduce the procurement cost. Local sourcing gives more flexilbilty interms of identifiying more breeds and can match with the demand. But it can be sometimes more costlier than Insourcing. But a right mix/blend of Insourcing and local sourcing can serve the purpose.

4.limited resources can be some selective breeds that has unique features and it can give upper end in tersm of USP.

5.Ofcourse govt restrictions like we should not do any hamr to pets as under pet control act is a punishable offense. Hygeine related to this field is very critical and this may cause spreading of flue frm pets to human beings. Rebates can be claimed in terms of treamtnet for pets if necessary and preservation act of pets that ensure safety for pets.

6. Competitive advantage is a very planned and strategic process that requires collobroation of many ctivities and teams of an organisation. As business is a very vibrant field it should be very improtant to be agile to the changing environment and must be responsive enough tp demand and supply constraints and contingencies.We should be aware of our competencies and should aligned all the factors supporting to procurement based on that to get a better impact. Cost is not only the driving force, service level and consistency in procurement and responsiveness is also very importatant.

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