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Q: radical supply chain procurement change ( No Answer,   2 Comments )
Question  
Subject: radical supply chain procurement change
Category: Business and Money > Consulting
Asked by: jez_miles-ga
List Price: $50.00
Posted: 26 Sep 2004 06:12 PDT
Expires: 27 Sep 2004 11:16 PDT
Question ID: 406450
What are the main issues an organisation faces in implementing radical
supply chain procurement change and how should they be addressed?"
Answer  
There is no answer at this time.

Comments  
Subject: Re: radical supply chain procurement change
From: neilzero-ga on 27 Sep 2004 07:41 PDT
 
Since there is no answer yet, I presume few can make a guess on the
meaning of "radical supply chain procurement change"
 Long ago some companies had an officer with the title buyer. He
interviwed salsmen who suggested systems, supplies, machines and
materials. Multi sourcing and other diversification is good as your
one supplier may raise the price, have a strike, file bankruptsey,
discontinue your item or other problems.
 While even minor changes can prove more costly than expected, some
changes are necessary to remain competitive with your competion.
Diversity reduces the chance of radical change, which can be a
disaster for your profit.
 Supply chain suggest transportation, which also needs to be
diversified so you are not overly dependent on trucks, rail, Airborne,
your bank, the internet, nor The US postal service.  Neil
Subject: Re: radical supply chain procurement change
From: jez_miles-ga on 27 Sep 2004 10:01 PDT
 
Neil - thanks for the comment.  The question is asking what challenges
a big company such as GM faces when transforming its supply chain and
procurement strategy.  You have point out some valid points such as
the balance bewteen economies of scale through single sourcing and the
associated risks when all your eggs are in one basket (what happens
when there is a strike for example)?

I am looking for a fairly in depth analysis of issues and mittigations
for supply chain / procurment transformation.  Thanks. Jez.

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