What is your recommended sourcing strategy in this case Please support your decision with quantitative and qualitative evidence gathered during the case analysis. Also, present your plan to reduce any risks associated with your sourcing decision. 2.
This case provided the data necessary to perform a cursory supplier financial analysis. In reality, cross-functional sourcing teams must often obtain this data during their assessment of potential suppliers. Discuss possible sources of supplier financial information. What may impact a purchasers ability to obtain supplier financial data 3.
A sourcing decision of the magnitude highlighted in this case requires a serious commitment of resources and time. Do all sourcing decisions require similar commitments of time and effort If not, describe the types of sourcing decisions that justify this effort. Describe the types of sourcing decisions that do not justify or require the level of effort and analysis required in this case. 4.
How important is the issue of supplier capacity in this case How did your group evaluate supplier capacity What level of attention or importance should supplier capacity receive during the sourcing decision Why 5.
Supplier selection decisions, such as the one presented in this case, usually require many weeks or months of analysis and discussion before reaching final agreement with a supplier(s). Creatively identify ways that the buying company can shorten the time from recognition of a purchase need to reaching agreement with the selected supplier. (Hint Consider performing certain required activities concurrently or in anticipation of a purchase requirement). 6.
The issue of single versus multiple sourcing is an important consideration during supplier selection. Using the following table, identify the potential advantages and disadvantages of single and multiple sourcing (not only as they relate to this case). OVERVIEW Pacific Systems Corporation, Inc. (PSC) is a medium-sized high technology company located north of San Francisco. In its early years PSC produced component parts and subsystems for personal computers and engineering workstations. In 2000, PSC added its own line of engineering workstations to its product offering. Recently, the company decided to expand its product line to include fully assembled personal computers (PCs). The company, recognized as a well-established component and subsystem manufacturer, has grown from a single product manufacturer with annual sales of 2.5 million, to a multi-product 3 billion firm in just ten years. This growth was helped in part through acquisitions in server markets and related computer industries. Pacific Systems Corporation has a strong reputation for manufacturing high quality products with on-time customer delivery. The company also emphasizes state-of-the-art technology in its product design, production, information, and delivery systems. PSCs decision to enter the personal computer market occurred during the peak of the Internet boom in late 1999. In particular, the marketing department decided to focus on the home PC user, to exploit the booming growth in home computer use. The projected growth rate of U.S. PC shipments to the home sector in the 1990s exceeded the business sector, and was predicted to surpass the business sector in total share of shipments. Although Pacific Systems Corporation was a small player in this market the company decided to pursue an aggressive strategy of selling high quality computers at affordable prices. The new line of computers, called the 9000x series, would come with a Pentium 600 MHz microprocessor, 128 megabytes of memory, 8-14 gigabytes of hard disk space, a read/write CD-ROM/DVD (digital video disc) drive, and a 17-inch flat screen color monitor. Although industry forecasts have certainly been downgraded, PCS is betting that in 2003 the computer industry will grow at a slow but steady state as consumers upgrade their...
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