Ebook: Sourcing Strategy: Principles, Policy and Designs

Sourcing Strategy is about sourcing as a long term strategic activity. Myopic purchasing management stops short with describing functional procedures and procedural innovations such as online order processing. The goal of this book is not just to document sourcing strategy, but to provide the tools to determine it. Therefore, rather than merely describing common sourcing processes, the book takes a normative approach to sourcing strategy. It argues for a rational, complete and integrated process where managers confront conflicts and dilemmas inherent in sourcing. It supports its recommendations with logical arguments from an interdisciplinary and analytical approach grounded in microeconomics, law and business strategy.
Sourcing Strategy fills a gap in the literature between purchasing management and managerial economics. It adopts an accessible treatment that allows even non-technical readers to achieve an in-depth understanding without sacrificing on advanced insights from formal analyses. By applying established as well as new qualitative and analytic concepts to sourcing designs, such as VCG mechanisms for variable quantity awards; discriminatory second price reverse auctions for syndicated bids; signaling equilibrium for resource sharing; and selection risk-incentive risk interactions for R&D-cum-production contracts, this work will be an indispensable guide for those studying B2B marketing, strategic purchasing or supply chain management. Part 1 of the book explains the economic and business principles that underlie sourcing strategies. It derives policies that guide viable strategies to meet sourcing goals. Part 2 applies these to creative designs for standard sourcing scenarios. A user friendly software package is linked to the chapters, with guided exercises as a learning tool.

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Sourcing Strategy is about sourcing as a long term strategic activity. Myopic purchasing management stops short with describing functional procedures and procedural innovations such as online order processing. The goal of this book is not just to document sourcing strategy, but to provide the tools to determine it. Therefore, rather than merely describing common sourcing processes, the book takes a normative approach to sourcing strategy. It argues for a rational, complete and integrated process where managers confront conflicts and dilemmas inherent in sourcing. It supports its recommendations with logical arguments from an interdisciplinary and analytical approach grounded in microeconomics, law and business strategy.
Sourcing Strategy fills a gap in the literature between purchasing management and managerial economics. It adopts an accessible treatment that allows even non-technical readers to achieve an in-depth understanding without sacrificing on advanced insights from formal analyses. By applying established as well as new qualitative and analytic concepts to sourcing designs, such as VCG mechanisms for variable quantity awards; discriminatory second price reverse auctions for syndicated bids; signaling equilibrium for resource sharing; and selection risk-incentive risk interactions for R&D-cum-production contracts, this work will be an indispensable guide for those studying B2B marketing, strategic purchasing or supply chain management. Part 1 of the book explains the economic and business principles that underlie sourcing strategies. It derives policies that guide viable strategies to meet sourcing goals. Part 2 applies these to creative designs for standard sourcing scenarios. A user friendly software package is linked to the chapters, with guided exercises as a learning tool.

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Sourcing Strategy is about sourcing as a long term strategic activity. Myopic purchasing management stops short with describing functional procedures and procedural innovations such as online order processing. The goal of this book is not just to document sourcing strategy, but to provide the tools to determine it. Therefore, rather than merely describing common sourcing processes, the book takes a normative approach to sourcing strategy. It argues for a rational, complete and integrated process where managers confront conflicts and dilemmas inherent in sourcing. It supports its recommendations with logical arguments from an interdisciplinary and analytical approach grounded in microeconomics, law and business strategy.
Sourcing Strategy fills a gap in the literature between purchasing management and managerial economics. It adopts an accessible treatment that allows even non-technical readers to achieve an in-depth understanding without sacrificing on advanced insights from formal analyses. By applying established as well as new qualitative and analytic concepts to sourcing designs, such as VCG mechanisms for variable quantity awards; discriminatory second price reverse auctions for syndicated bids; signaling equilibrium for resource sharing; and selection risk-incentive risk interactions for R&D-cum-production contracts, this work will be an indispensable guide for those studying B2B marketing, strategic purchasing or supply chain management. Part 1 of the book explains the economic and business principles that underlie sourcing strategies. It derives policies that guide viable strategies to meet sourcing goals. Part 2 applies these to creative designs for standard sourcing scenarios. A user friendly software package is linked to the chapters, with guided exercises as a learning tool.

Content:
Front Matter....Pages i-xix
Sourcing Strategy....Pages 5-12
Outsourcing....Pages 13-30
Architecture and Processes....Pages 31-49
Sourcing Goals and Objectives....Pages 51-64
The Government Sourcing Environment....Pages 65-75
Costs and Performance Risks....Pages 77-92
Contracts and Incentives....Pages 93-110
Source selection....Pages 111-137
Supplier Strategies....Pages 139-154
Sourcing Reports and Data....Pages 155-167
Foundations of sourcing analysis....Pages 177-186
Sourcing Design Elements....Pages 187-192
Risks and Rewards of Multiple Sourcing....Pages 193-209
Capacity Constraints and Pricing....Pages 211-228
Syndicates, Risk and Demand Uncertainty....Pages 229-241
Risks and Resource Sharing....Pages 243-253
Selection and Incentives for Innovation: LIC....Pages 255-268
Selection and Incentives for Innovation: Yardstick Contracts....Pages 269-285
Back Matter....Pages 287-319

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Sourcing Strategy is about sourcing as a long term strategic activity. Myopic purchasing management stops short with describing functional procedures and procedural innovations such as online order processing. The goal of this book is not just to document sourcing strategy, but to provide the tools to determine it. Therefore, rather than merely describing common sourcing processes, the book takes a normative approach to sourcing strategy. It argues for a rational, complete and integrated process where managers confront conflicts and dilemmas inherent in sourcing. It supports its recommendations with logical arguments from an interdisciplinary and analytical approach grounded in microeconomics, law and business strategy.
Sourcing Strategy fills a gap in the literature between purchasing management and managerial economics. It adopts an accessible treatment that allows even non-technical readers to achieve an in-depth understanding without sacrificing on advanced insights from formal analyses. By applying established as well as new qualitative and analytic concepts to sourcing designs, such as VCG mechanisms for variable quantity awards; discriminatory second price reverse auctions for syndicated bids; signaling equilibrium for resource sharing; and selection risk-incentive risk interactions for R&D-cum-production contracts, this work will be an indispensable guide for those studying B2B marketing, strategic purchasing or supply chain management. Part 1 of the book explains the economic and business principles that underlie sourcing strategies. It derives policies that guide viable strategies to meet sourcing goals. Part 2 applies these to creative designs for standard sourcing scenarios. A user friendly software package is linked to the chapters, with guided exercises as a learning tool.

Content:
Front Matter....Pages i-xix
Sourcing Strategy....Pages 5-12
Outsourcing....Pages 13-30
Architecture and Processes....Pages 31-49
Sourcing Goals and Objectives....Pages 51-64
The Government Sourcing Environment....Pages 65-75
Costs and Performance Risks....Pages 77-92
Contracts and Incentives....Pages 93-110
Source selection....Pages 111-137
Supplier Strategies....Pages 139-154
Sourcing Reports and Data....Pages 155-167
Foundations of sourcing analysis....Pages 177-186
Sourcing Design Elements....Pages 187-192
Risks and Rewards of Multiple Sourcing....Pages 193-209
Capacity Constraints and Pricing....Pages 211-228
Syndicates, Risk and Demand Uncertainty....Pages 229-241
Risks and Resource Sharing....Pages 243-253
Selection and Incentives for Innovation: LIC....Pages 255-268
Selection and Incentives for Innovation: Yardstick Contracts....Pages 269-285
Back Matter....Pages 287-319
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