PROCUREMENT AND OUTSOURC PROCUREMENT AND OUTSOURC ING ING STRATEGIES STRATEGIES Presented by: Presented by: Jearnmaneengam Amornsak Jearnmaneengam Amornsak Kuhirunyarat Wongwanida Kuhirunyarat Wongwanida Jullasing Jullasing Phanu Phanu
Mar 04, 2016
PROCUREMENT AND OUTSOUPROCUREMENT AND OUTSOURCINGRCING STRATEGIESSTRATEGIES
Presented by:Presented by: Jearnmaneengam Amornsak Jearnmaneengam Amornsak Kuhirunyarat Wongwanida Kuhirunyarat Wongwanida
JullasingJullasing Phanu Phanu
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 22
ObjectiveObjective
• To understand the important roles and key To understand the important roles and key issues involved in outsourcing and issues involved in outsourcing and procurement processesprocurement processes
• To be able to apply outsourcing and To be able to apply outsourcing and procurement strategiesprocurement strategies
• To realize the impact of E-Markets in E-To realize the impact of E-Markets in E-ProcurementProcurement
Presented by Jearnmaneengam AmornsakPresented by Jearnmaneengam Amornsak
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 33
OutlineOutline• OutsourcingOutsourcing
– Outsourcing Benefits and RisksOutsourcing Benefits and Risks– Framework for Buy/ Make DecisionsFramework for Buy/ Make Decisions
Case StudyCase Study : : FreeMarkets OnLine, Inc.FreeMarkets OnLine, Inc.• E-Procurement and E-MarketE-Procurement and E-Market
– Framework for E-ProcurementFramework for E-Procurement• ConclusionConclusion
Presented by Jearnmaneengam AmornsakPresented by Jearnmaneengam Amornsak
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 44
OutlineOutline• OutsourcingOutsourcing
– Outsourcing Benefits and RisksOutsourcing Benefits and Risks– Framework for Buy/ Make DecisionsFramework for Buy/ Make Decisions
Case StudyCase Study : : FreeMarkets OnLine, Inc.FreeMarkets OnLine, Inc.• E-Procurement and E-MarketE-Procurement and E-Market
– Framework for E-ProcurementFramework for E-Procurement• ConclusionConclusion
Presented by Jearnmaneengam AmornsakPresented by Jearnmaneengam Amornsak
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 55
OutsourcingOutsourcing
IntroductionIntroduction• Outsourcing components have increased Outsourcing components have increased
progressively over the yearsprogressively over the years• Increasing the profit by reducing the costIncreasing the profit by reducing the cost
Presented by Jearnmaneengam AmornsakPresented by Jearnmaneengam Amornsak
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 66
OutlineOutline• OutsourcingOutsourcing
– Outsourcing Benefits and RisksOutsourcing Benefits and Risks– Framework for Buy/ Make DecisionsFramework for Buy/ Make Decisions
Case StudyCase Study : : FreeMarkets OnLine, Inc.FreeMarkets OnLine, Inc.• E-Procurement and E-MarketE-Procurement and E-Market
– Framework for E-ProcurementFramework for E-Procurement• ConclusionConclusion
Presented by Jearnmaneengam AmornsakPresented by Jearnmaneengam Amornsak
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 77
Outsourcing - Outsourcing - Benefits and RisksBenefits and Risks
The benefits of using outsourceThe benefits of using outsource• Economies of scaleEconomies of scale
– Aggregation of many orders reduces costs, both in Aggregation of many orders reduces costs, both in purchasing and in manufacturingpurchasing and in manufacturing
• Risk pooling Risk pooling – Demand uncertainty transferred to the suppliers Demand uncertainty transferred to the suppliers (CEM)(CEM)
– Suppliers reduce uncertainty through this effectSuppliers reduce uncertainty through this effect• Reduce capital investmentReduce capital investment
– Capital investment transferred to suppliers. Capital investment transferred to suppliers.
Presented by Jearnmaneengam AmornsakPresented by Jearnmaneengam Amornsak
Aggregation of the demandAggregation of the demand across locations likes the across locations likes the
higher demand is higher demand is compensated compensated
with the lower to reduce with the lower to reduce the variable of demandthe variable of demand
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 88
Outsourcing - Outsourcing - Benefits and RisksBenefits and Risks
The benefits of using outsource (Continued)The benefits of using outsource (Continued)• Focus on core competencyFocus on core competency
– Buyer can focus on its core strengthBuyer can focus on its core strength– Allows buyer to differentiate from its competitors Allows buyer to differentiate from its competitors
• Increased flexibilityIncreased flexibility– The ability to better react to changes in customer demandThe ability to better react to changes in customer demand– The ability to use the supplier’s technical knowledge The ability to use the supplier’s technical knowledge – Critical in the industries: Critical in the industries:
• HHigh-tech products igh-tech products where technologies change very where technologies change very frequentlyfrequently
• FFashion productsashion products which have a short life cycle which have a short life cycle
Presented by Jearnmaneengam AmornsakPresented by Jearnmaneengam Amornsak
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 99
Outsourcing - Outsourcing - Benefits and RisksBenefits and Risks
Outsourcing risksOutsourcing risks• LossLoss of competitive knowledgeof competitive knowledge
– Critical components to suppliers may open up Critical components to suppliers may open up opportunities for competitors opportunities for competitors
– Implies that companies lose their ability to Implies that companies lose their ability to introduce new designs introduce new designs
– Using many outsourcing suppliers may Using many outsourcing suppliers may obstructive the development innovations of obstructive the development innovations of the organization the organization
Presented by Jearnmaneengam AmornsakPresented by Jearnmaneengam Amornsak
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 1010
Outsourcing - Outsourcing - Benefits and RisksBenefits and Risks
Outsourcing risks (Continued)Outsourcing risks (Continued)• Conflicting objectivesConflicting objectives
– Demand IssuesDemand Issues• In a good economyIn a good economy
– Demand is highDemand is high– buyers require to make long-term commitments about orderingbuyers require to make long-term commitments about ordering
• In a slow economyIn a slow economy– Long-term commitments entail huge financial risks for the Long-term commitments entail huge financial risks for the
buyersbuyers
– Product design issues Product design issues • Buyers would like to solve design problems as fast as possibleBuyers would like to solve design problems as fast as possible• Suppliers focus on cost reduction Suppliers focus on cost reduction
Presented by Jearnmaneengam AmornsakPresented by Jearnmaneengam Amornsak
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 1111
OutlineOutline• OutsourcingOutsourcing
– Outsourcing Benefits and RisksOutsourcing Benefits and Risks– Framework for Buy/ Make DecisionsFramework for Buy/ Make Decisions
Case StudyCase Study : : FreeMarkets OnLine, Inc.FreeMarkets OnLine, Inc.• E-Procurement and E-MarketE-Procurement and E-Market
– Framework for E-ProcurementFramework for E-Procurement• ConclusionConclusion
Presented by Kuhirunyarat Wongwanida Presented by Kuhirunyarat Wongwanida
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 1212
Outsourcing - Outsourcing - FrameworkFramework
• Manufacture or outsource ?Manufacture or outsource ?Analyzing the core of the business is needed Analyzing the core of the business is needed – Dependency on capacityDependency on capacity
• The firm has the knowledge and the skillThe firm has the knowledge and the skill– Dependency on knowledgeDependency on knowledge
• The firm has the knowledge and the skill, but can The firm has the knowledge and the skill, but can not effort to manufacturingnot effort to manufacturing
Presented by Jearnmaneengam AmornsakPresented by Jearnmaneengam Amornsak
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 1313
Product ArchitecturesProduct Architectures• Modular product Modular product
– Made by combining different componentsMade by combining different components• Components are independent of each otherComponents are independent of each other• Standard interfaces are used ( i.e. PC )Standard interfaces are used ( i.e. PC )
• Integral productIntegral product– Made up from components whose Made up from components whose
functionalities are tightly relatedfunctionalities are tightly related• Not made from off-the-shelf componentsNot made from off-the-shelf components• Evaluated on system performance, not on Evaluated on system performance, not on
component performance ( i.e. car engines )component performance ( i.e. car engines )
Presented by Jearnmaneengam AmornsakPresented by Jearnmaneengam Amornsak
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 1414
Product ArchitecturesProduct Architectures
A Framework for Make/Buy DecisionsA Framework for Make/Buy Decisions
Keep production internal
Outsourcing is an option
Outsourcing is very risky
Integral
Opportunity to reduce cost through outsourcing
Outsourcing is an opportunity
Outsourcing is riskyModular
Independent for knowledge and capacity
Independent for knowledge, dependent for capacity
Dependency on knowledge and capacity
Product
Presented by Jearnmaneengam AmornsakPresented by Jearnmaneengam Amornsak
Keep production internal
Outsourcing is an option
Outsourcing is very risky
Integral
Opportunity to reduce cost through outsourcing
Outsourcing is an opportunity
Outsourcing is riskyModular
Independent for knowledge and capacity
Independent for knowledge, dependent for capacity
Dependency on knowledge and capacity
Product
Keep production internal
Outsourcing is an option
Outsourcing is very risky
Integral
Opportunity to reduce cost through outsourcing
Outsourcing is an opportunity
Outsourcing is riskyModular
Independent for knowledge and capacity
Independent for knowledge, dependent for capacity
Dependency on knowledge and capacity
Product
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 1515
OutlineOutline• OutsourcingOutsourcing
– Outsourcing Benefits and RisksOutsourcing Benefits and Risks– Framework for Buy/ Make DecisionsFramework for Buy/ Make Decisions
Case StudyCase Study : : FreeMarkets OnLine, Inc.FreeMarkets OnLine, Inc.• E-Procurement and E-MarketE-Procurement and E-Market
– Framework for E-ProcurementFramework for E-Procurement• ConclusionConclusion
Presented by Kuhirunyarat Wongwanida Presented by Kuhirunyarat Wongwanida
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 1616
Changeover of outsourcing in Changeover of outsourcing in 1990s1990s
Industrial Buyer
Manufacturing Representative
Manfac. Rep.
Manfac. Rep.
Suppliers
FreeMarkets
Online
Presented by Kuhirunyarat Wongwanida Presented by Kuhirunyarat Wongwanida
Buyers lack of expertiseFragmented supply marketVariation among suppliers
Information problem for buyers to make decisions
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 1717
FreeMarkets OnLine, Inc.FreeMarkets OnLine, Inc.
• Founded in 1995 and was on the verge of Founded in 1995 and was on the verge of breaking even in 1998.breaking even in 1998.
• From From $$75,000 investment, company achieved 75,000 investment, company achieved $$6.0 millions revenue in 1998.6.0 millions revenue in 1998.
• An online market making firm that enabled An online market making firm that enabled industrial buyers to link up with their potential industrial buyers to link up with their potential suppliers in a live electronic bidding.suppliers in a live electronic bidding.
• The result: The result: Generated over 15% in Generated over 15% in procurement procurement costs saving costs saving for buyersfor buyers. .
Presented by Kuhirunyarat Wongwanida Presented by Kuhirunyarat Wongwanida
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 1818
The Market-Making ProcessThe Market-Making Process
• Core Service:Core Service: – To provide on-line industrial market-making services To provide on-line industrial market-making services
that culminated in real-timethat culminated in real-time Competitive Bidding Events (CBEs); 90-mins to 2-hrs. 90-mins to 2-hrs.
FreeMarkets Suppliers Buyers
BidWareBidWare BidServer
Internet
Internet
Functions to monitor market price, submit bids, and print report.
Functions to monitor bidding, and print result report.
Presented by Kuhirunyarat Wongwanida Presented by Kuhirunyarat Wongwanida
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 1919
Framework in Market-Making Framework in Market-Making ProcessProcess
IdentifySavings
Opportunity
PrepareTotal-cost
RFQ*
Identify Screen, Support
Suppliers
ConductOnLineCBEs
ProvidePost-BidSupport
• 5 Steps in FreeMarket Online 5 Steps in FreeMarket Online
Analysis expenditure and savings for buyers
Defining all elements of Request for Quotations,requirements of drawings, volume
forecast, cost.Screening the potential suppliers with buyers and supporting RFQ to suppliers
Training sessions to suppliers, submitting real-time bidsCollecting cost breakdown,
final supplier analysis.
Presented by Kuhirunyarat Wongwanida Presented by Kuhirunyarat Wongwanida
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 2020
What is the value to the What is the value to the Customers?Customers?• BuyersBuyers
– Do not have to deal with manufacturers’ representativesDo not have to deal with manufacturers’ representatives– Access to sourcing information that is otherwise Access to sourcing information that is otherwise
difficult/expensive to assembledifficult/expensive to assemble– Cost Savings (up to 43%, average 15%)Cost Savings (up to 43%, average 15%)
• SuppliersSuppliers– More opportunities to access the large industrial buyers More opportunities to access the large industrial buyers
• Especially for small or overseas suppliersEspecially for small or overseas suppliers– Lower sales and marketing costs Lower sales and marketing costs – Helps supplier benchmark other competitorsHelps supplier benchmark other competitors– Get the good perspective of marketplaceGet the good perspective of marketplace
Presented by Kuhirunyarat Wongwanida Presented by Kuhirunyarat Wongwanida
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 2121
Revenue ModelRevenue Model• A hybrid of service fees + sales commissionsA hybrid of service fees + sales commissions
– Charged buyers a monthly service fee based on Charged buyers a monthly service fee based on the size of the market making team. the size of the market making team. • Ex. Typical project with engineering work costs Ex. Typical project with engineering work costs $75,000/month x 2.
– Charged winning suppliers a commission fee varied by supply industry.
• Ex. General case is 2.5% of purchase price.Ex. General case is 2.5% of purchase price.
• The business reached breakeven point within The business reached breakeven point within 3 years.3 years.
Presented by Kuhirunyarat Wongwanida Presented by Kuhirunyarat Wongwanida
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 2222
OutlineOutline• OutsourcingOutsourcing
– Outsourcing Benefits and RisksOutsourcing Benefits and Risks– Framework for Buy/ Make DecisionsFramework for Buy/ Make Decisions
Case StudyCase Study : : FreeMarkets OnLine, Inc.FreeMarkets OnLine, Inc.• E-Procurement and E-MarketE-Procurement and E-Market
– Framework for E-ProcurementFramework for E-Procurement• ConclusionConclusion
Presented by Kuhirunyarat Wongwanida Presented by Kuhirunyarat Wongwanida
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 2323
The Value PropositionThe Value Proposition
• Serving as a intermediary between buyers Serving as a intermediary between buyers and suppliersand suppliers
• Increasing the number of suppliers Increasing the number of suppliers involved in the bidding eventinvolved in the bidding event
• Identifying, qualifying, and supporting Identifying, qualifying, and supporting supplierssuppliers
• Conduction the bidding eventConduction the bidding event• Improve supply chain efficiencyImprove supply chain efficiency
Presented by Jullasing PhanuPresented by Jullasing Phanu
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 2424
E-Market’s DrawbacksE-Market’s Drawbacks
• Improper to establish long-term Improper to establish long-term relationshipsrelationships
• Problems in transaction fee paidProblems in transaction fee paid– Both sellers and buyers resist payingBoth sellers and buyers resist paying– Inflexible transaction fees systemInflexible transaction fees system
Presented by Jullasing PhanuPresented by Jullasing Phanu
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 2525
Change in E-Market LandscapeChange in E-Market Landscape
• Value-added public e-marketsValue-added public e-markets• Private e-marketsPrivate e-markets• Consortia-based e-marketsConsortia-based e-markets• Content-based e-marketsContent-based e-markets
Presented by Jullasing PhanuPresented by Jullasing Phanu
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 2626
Change in E-Market LandscapeChange in E-Market Landscape
• Value-added public e-marketsValue-added public e-markets• Private e-marketsPrivate e-markets• Consortia-based e-marketsConsortia-based e-markets• Content-based e-marketsContent-based e-markets
Presented by Jullasing PhanuPresented by Jullasing Phanu
E-market offers additional value-added services such as E-market offers additional value-added services such as inventory management, distribution planning, demand inventory management, distribution planning, demand forecasting etc.forecasting etc.
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 2727
Change in E-Market LandscapeChange in E-Market Landscape
• Value-added public e-marketsValue-added public e-markets• Private e-marketsPrivate e-markets• Consortia-based e-marketsConsortia-based e-markets• Content-based e-marketsContent-based e-markets
Presented by Jullasing PhanuPresented by Jullasing Phanu
A private e-market belong to big manufacturers which A private e-market belong to big manufacturers which increases the manufacturers total supply chain performances. increases the manufacturers total supply chain performances.
Wal-MartWal-Mart
IBM IBM Dell Computers Dell Computers
Sun Microsystems Sun Microsystems
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 2828
Change in E-Market LandscapeChange in E-Market Landscape
• Value-added public e-marketsValue-added public e-markets• Private e-marketsPrivate e-markets• Consortia-based e-marketsConsortia-based e-markets• Content-based e-marketsContent-based e-markets
Suppliers Manufacturers
Presented by Jullasing PhanuPresented by Jullasing Phanu
E-Market in a specific industry, providing standard E-Market in a specific industry, providing standard system necessary for the specific industrysystem necessary for the specific industry
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 2929
Change in E-Market LandscapeChange in E-Market Landscape
• Value-added public e-marketsValue-added public e-markets• Private e-marketsPrivate e-markets• Consortia-based e-marketsConsortia-based e-markets• Content-based e-marketsContent-based e-markets
Presented by Jullasing PhanuPresented by Jullasing Phanu
E-Market expertise in miscellaneous services E-Market expertise in miscellaneous services such as maintenance and repairing.such as maintenance and repairing.
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 3030
OutlineOutline• OutsourcingOutsourcing
– Outsourcing Benefits and RisksOutsourcing Benefits and Risks– Framework for Buy/ Make DecisionsFramework for Buy/ Make Decisions
Case StudyCase Study : : FreeMarkets OnLine, Inc.FreeMarkets OnLine, Inc.• E-Procurement and E-MarketE-Procurement and E-Market
– Framework for E-ProcurementFramework for E-Procurement• ConclusionConclusion
Presented by Kuhirunyarat Wongwanida Presented by Kuhirunyarat Wongwanida
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 3131
A Framework for E-ProcurementA Framework for E-Procurement
• Types of productTypes of product– Indirect materialsIndirect materials– Strategic componentsStrategic components– Commodity productsCommodity products
Presented by Jullasing PhanuPresented by Jullasing Phanu
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 3232
A Framework for E-ProcurementA Framework for E-Procurement
• Indirect materialIndirect material– Low riskLow risk– Content-based e-marketsContent-based e-markets
• Strategic componentsStrategic components– High riskHigh risk– Private e-market or consortia-based e-marketPrivate e-market or consortia-based e-market
Presented by Jullasing PhanuPresented by Jullasing Phanu
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 3333
A Framework for E-ProcurementA Framework for E-Procurement
• Commodity productsCommodity products– High riskHigh risk– Public e-market, private e-market, or Public e-market, private e-market, or
consortia-based e-marketconsortia-based e-market– Strategy based on inventory and priceStrategy based on inventory and price
Presented by Jullasing PhanuPresented by Jullasing Phanu
InventoryInventoryLevelLevel
ManufacturersManufacturers SuppliersSuppliers
HoldingHoldingCostCost
ManufacturersManufacturers SuppliersSuppliers
InventoryInventoryLevelLevel
ManufacturersManufacturers SuppliersSuppliers
HoldingHoldingCostCost
ManufacturersManufacturers SuppliersSuppliers
InventoryInventoryLevelLevel
ManufacturersManufacturers SuppliersSuppliers
HoldingHoldingCostCost
ManufacturersManufacturers SuppliersSuppliers
Procurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biProcurement and Outsourcing, Supply Chain Management, Prof. Tsao, De-biPage Page 3434
OutlineOutline• OutsourcingOutsourcing
– Outsourcing Benefits and RisksOutsourcing Benefits and Risks– Framework for Buy/ Make DecisionsFramework for Buy/ Make Decisions
Case StudyCase Study : : FreeMarkets OnLine, Inc.FreeMarkets OnLine, Inc.• E-Procurement and E-MarketE-Procurement and E-Market
– Framework for E-ProcurementFramework for E-Procurement• ConclusionConclusion
Presented by Kuhirunyarat Wongwanida Presented by Kuhirunyarat Wongwanida
Thank YouThank YouFor Your AttentionFor Your Attention