COMMERCE 4OD3 Lecture Notes - Lecture 6: Outsourcing, Business Process, Key Management
13 Dec 2018
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: extremely low strategic value: buying firms must make decisions as part of comprehensive sourcing strategy. Financial evaluation: outsourcing decisions are required to make short and long term financial sense, however outsourcing benefits are not mutually exclusive and independent, but rather significantly interrelated. Supplier selection: supplier profiles, key management contacts, a company overview. Swot analysis, porter"s five forces key financial figures. Information on current contracts, owners of the relationship within the firm, and an organizational chart. [physical assets, a specific third-part agreement in the contract. In order to effectively cultivate the relationship the buying firm must actively monitor and evaluate performance. The buying firm must also solve outsourcing related problems: the original contract establishes, the performance measures, deliverables, due dates, the expected supplier requirements. Reasons for outsourcing the generic strategic benefits of outsourcing: cost minimization, refocus organization to core, the usual primary driver for outsourcing:
