Supply Chain Sourcing ,week (1-4) All Quiz Answers With Assignments.

Supply Chain Sourcing

Week 2 Assignment :


Describe the situation you are using the discuss the outsourcing dilemma:

  • What happened?
  • Who is involved?
  • Where did it take place?
  • When did it take place?
  • Why did that happen?
With the recent political developments, the topic ofoutsourcing was in the news a lot. As with any topic,there are at least two sides to the argument. While mygoal is not to take a side here, I believe it is critical to befamiliar and understand as much of this debate. Withthat in mind, there are several stakeholders, each withslightly different objectives. To help you think about this,I would like to point out some of the objectives thatmight drive behaviors in this decision.


What were the reasons given regarding the motive of the outsourcing decision? What, if any, environmental forces did management specifically cite for triggering the decision?

Must act in the interest of the company's owners (in thecase of publicly traded companies, this is the investors),in shot their job is to:Maintain and increase profitability (increaserevenue and reduce costs)Maintain competitiveness in the marketplace(against other companies offering similar productsand services)Reduce riskImplement the vision and mission of the company


Can you find some reactions by the affected workers? What did they say about the situation?

Affected EmployeesMaintain their employment:Keep their jobs secureResist any outsourcingNot-affected EmployeesMaintain their employment:Keep their jobs secureIf necessary, restrict Outsourcing to other parts ofthe company if necessary


What, if any, reaction could you find from the other (not affected) workers? What did they say about the situation?

InvestorsInvest in a company for profit and thus want to ensure:Their investment is paying a return that is sizableand secureThe company remains competitive.The Public at Largeis interested in a healthy and vibrant local community.


What was the reaction from the public (media, politics, NGOs, etc.)?

benefits of outsourcing: take advantage of economies ofscale, it improves overall world economy, we can handleseasonal demands, have access to world-class servicesor products


What did the company cite as the business reason for the outsourcing decision?

The main advantages of outsourcing includes obtainingspecialist in those domain, which enables access tospecial quality of raw materials, cheap labour, and whohave a better experience to deal with that segment. Itreduces our administrative cost as well


What is your conclusion on the situation you described? Do you think the company made the right decision? Was it handled as well as it could? What could they have done differently?

Time saving, cost reduction, good service performance,good quality etc.

Week 3 Assignment :


Describe the company you are using:

  • What do they sell?
  • Who is leading the company? Focus specifically on the people in purchasing/procurement/supply management/strategic sourcin.
  • Where are they located?
  • When did they start?
  • How are they doing (financially)?
What do they sell? H&M is the world secondlargest fashion retailer.Who is leading the company? Focus specifically onthe people in purchasing/procurement/supplymanagement/strategic sourcing. Currently, thecompany has changed its CEO, now it's HelelnaHelmersson, who wants a more sustainable chainin all the process. It's been focused on purchase ofrecycled materiales to take advantege of thetextile fibres to be the raw materials with thesuppliers/manufacturers are going to produce thefabrics and garments; reducing in costs thepurchase of fabrics alreade made, this is just onegeneral example.Where are they located? They are centrally locatedin Sweden, however, in each market there is aHead of Merchandising, whose team analyzes theneeds of the market to generate the purchase.The purchase is centrally consolidated by Sweden,and these purchases are adhered to certainregions of larger purchase, so that at wholesalevolume they obtain a better joint negotiation ofBuying Office with suppliers, which are mostlylocated in Southeast Asia, and a few others inEastern Europe.When did they start? Since mid 90's.How are they doing (financially)? H&M has chosenvertical integration as one of its businessstrategies to better control the whole supplychain. From manufacturing to assembling,merchandising to retailing, all these processes areunder its control. It works closely with itsproduction offices, suppliers and buyers. Whilefinish designing at Stockholm headquarters, itspartnership suppliers will seek for the mostsuitable raw materials and matched them forassembling. H&M places bulk order to minimisethe risk of price fluctuation and enjoy a certainlevel of economy of scale. All this representssavings and an optimization in the sourcingprocess, USD $850millon last year.


How much is purchasing/procurement/supply management/strategic sourcing mentioned in the public documents? Please reference all the locations you could find.

Not so much, it's all about how H&M has chosen verticalintegration as one of its business strategies to bettercontrol the whole supply chain. From manufacturing toassembling, merchandising to retailing, all theseprocesses are under its control. It works closely with itsproduction offices, suppliers and buyers. While finishdesigning at Stockholm headquarters, its partnershipsuppliers will seek for the most suitable raw materialsand matched them for assembling. H&M places bulkorder to minimise the risk of price fluctuation and enjoya certain level of economy of scale.


From what you can tell from your research, what is the contribution of purchasing/procurement/supply management/strategic sourcing? Be as specific as possible.

H&M is enjoying a certaing level of economy of scale,  because how sourcing process is structured right now, it  allows to purchase in major volumes to obtain better  lower prices per unit with its suppliers in Asia, reducing  costs even though when all these have to be ship to the  markets. It's a great negotiation they're beating.


Can you find anything about the suppliers they consider strategic? Specifically, what initiatives did they announce with their strategic suppliers?

Yeah, I can. For example, one of the major suppliers inmanufacturing is Bangladesh, in this order H&M looksafter his market with initiatives, strategy to improvelabor and working in tis supply chain. H&M raises wagesat its supplier factories as a breath of fresh air after theRana Plaza factory collapse in Bangladesh. H&Mproposes and look for to respect the righs of theworkers who make their products, and has been apioneer in this kind ofstrategies

Week 4 Assignment :


Start by listing the ten most frequent places you shop (personally or business). Can you estimate the approximate share of your purchases for each place?

Note: if you do not feel comfortable using real store names, you do not have to. Also, you can use percentages for the share.

Amazon Nike Adidas Costco House services Zara Restaurants Office Depot Uber 


What categories of suppliers make sense for your situation? What do you name the categories? How do you assign the categories (what are your two dimensions)? Which of the suppliers you previously mentioned go into which category?

Note: it is okay if you want to use the common Strategic, Bottleneck, Leverage, and Routine delineation here - but if you can improve on it, that would be even better. Remember, the two dimensions are Profit Impact and Supply Risk.

Some of the categories are: Quality, service, availability,cost, speed and environmental and social aspectsThesuppliers as Nike, Adidas, Zara and Amazon goes to thecategory of Quality, availability and environmental andsocial aspects because I always want the best productwith the best quality to do and also I like that thscomany care the environment around all their supplychain.In the category of cost I considered Office Depotand Costco because there are many places in which Ican buy similar products but I choose the cheaper placeto buy the same product.In the category of service Iconsider the restaurants because is important that theycare about their customer and bring the best possibleservice.In the category of speed I consider Amazon asthe most important because I want to get my product ina short timeIn the category of availability I consider uber, Rappi andsome stores as Nike,Adidad and Zara as the mostimportant.


For each of the suppliers who you mentioned (and placed in a respective segment) evaluate your relationships with each of them. Specifically, focus on the unique value you receive from them and the unique value they receive from you (revenue enhancements, cost savings, innovation, flexibility, etc.).

Amazon: Service, quality,availability, speedNike: Quality, availabilityAdidas: Quality,availabilityCostco: Cost savingHouse services:Zara:QualityRestaurants: Good serviceOffice Depot:availabilityUber:Availability, speedRappi:Availability, speed


Outline an action plan to streamline your purchases from your suppliers.

Fist of all you need to Alalyze the differents suppliersand choose the best one, after that you need to have areally good and close communication with them toestimate the delivery time, quality, delivery, etc, Andfinally you need to monitore and check that all therequirements tht you establish with the supplier arecorrect.

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