Case Study Approaches to Managing Global Sourcing Risk
APPROACHES TO MANAGING GLOBAL SOURCING RISK
1.0: INTRODUCTION
In globalization ever more efficient transportation and logistics has driven the outsourcing of manufacturing to, and sourcing of parts and goods from, distant regions to reap the benefits of lower sourcing and production costs. This has been managed by developing global supply chain management.But with its inherent complexity a global supply chain is at risk from many potential issues that could disrupt the chain. Risk must therefore be mitigated as far as possible at both a strategic and tactical level in order to reap the continued rewards of global sourcing. Many companies fail to do this when initially expanding their supply chains.
They look at the rewards of sourcing from new regions and increase the complexity of their chains without paying sufficient attention to the risks involved. In today’s more volatile business climate companies are lack of the resilience in their global supply chains and are more vulnerable to failure, now more than ever .A report which published in the mid‐2008 by analysts, the Aberdeen Group, found that over the preceding year, some 58% of companies suffered financial losses as a result of supply chain disruptions. The ‘bestin class’ firms were those that had adopted a more holistic view of supply chain risk and improved their supply chain processes and infrastructure in order to be better positioned to foresee, spot and respond to potential disruptions.
In the journal we choose begins by reviewing the literature on global supply chain risk and global sourcing risk, including a discussion on risk mitigation strategies. The journal also followed by a number of case studies and the results of the cross-case analysis. Finally the journal included, a discussion on the implications of the results, the conclusions reached and recommendations for further research are presented.
2.0:RESEARCH PURPOSE AND OBJECTIVES * To understand how managers consider
1.0: INTRODUCTION
In globalization ever more efficient transportation and logistics has driven the outsourcing of manufacturing to, and sourcing of parts and goods from, distant regions to reap the benefits of lower sourcing and production costs. This has been managed by developing global supply chain management.But with its inherent complexity a global supply chain is at risk from many potential issues that could disrupt the chain. Risk must therefore be mitigated as far as possible at both a strategic and tactical level in order to reap the continued rewards of global sourcing. Many companies fail to do this when initially expanding their supply chains.
They look at the rewards of sourcing from new regions and increase the complexity of their chains without paying sufficient attention to the risks involved. In today’s more volatile business climate companies are lack of the resilience in their global supply chains and are more vulnerable to failure, now more than ever .A report which published in the mid‐2008 by analysts, the Aberdeen Group, found that over the preceding year, some 58% of companies suffered financial losses as a result of supply chain disruptions. The ‘bestin class’ firms were those that had adopted a more holistic view of supply chain risk and improved their supply chain processes and infrastructure in order to be better positioned to foresee, spot and respond to potential disruptions.
In the journal we choose begins by reviewing the literature on global supply chain risk and global sourcing risk, including a discussion on risk mitigation strategies. The journal also followed by a number of case studies and the results of the cross-case analysis. Finally the journal included, a discussion on the implications of the results, the conclusions reached and recommendations for further research are presented.
2.0:RESEARCH PURPOSE AND OBJECTIVES * To understand how managers consider
References: Christopher.M,Mena.C,Khan.O,Yurt.O, (2011),"Approaches to managing global sourcing risk", Supply Chain Management: An International Journal, Vol. 16 Iss: 2 pp. 67 Retrieved from 81http://www.emeraldinsight.com/case_studies.htm/case_studies.htm?articleid=1912268&show=html Nesta,”Critical path management”Scotland Retrieved from http://www.nesta.org.uk/areas_of_work/creative_economy/fashiontoolkit/designers_edition/assets/features/critical_path_ management Mitigating risk in the global supply chain Retrieved from http://www.cevalogistics.com/enus/whatweoffer/Consulting Solutions Design/Documents/mitigating%20risk%20in%20the%20sc%20edited.pdf