Procurement and Outsourcing Xiaohong Pang Automation Department Shanghai Jiaotong University
Procurement and Outsourcing Xiaohong Pang Automation Department Shanghai Jiaotong University
Lecture Outline Introduction Outsourcing Benefits and Risks A Framework for Buy/Make Decisions ■e-Procurement A Framework for e-Procurement Case Study:FreeMarkets Online
Introduction Outsourcing Benefits and Risks A Framework for Buy/Make Decisions e-Procurement A Framework for e-Procurement Case Study: FreeMarkets Online Lecture Outline
Topics Outsourcing Benefits A Framework for and Risk Buy/MMake Decisions
Topics
Outsourcing In the 1990s,outsourcing was the focus of many industrial manufacturers;firms considered outsourcing everything from the procurement function to production and manufacturing. Executives were focused on stock value, and huge pressure was placed on the organization to increase profits. Consider three examples(p.260): Nike,Cisco,Apple Computers
Outsourcing In the 1990s, outsourcing was the focus of many industrial manufacturers; firms considered outsourcing everything from the procurement function to production and manufacturing. Executives were focused on stock value, and huge pressure was placed on the organization to increase profits. Consider three examples (p.260): Nike, Cisco, Apple Computers
Why Outsourcing? nAn“easy way”to increase profits Nike,Cisco,Apple outsource most of their manufacturing, Each could focus on research,marketing
Why Outsourcing? An “easy way” to increase profits Nike, Cisco, Apple outsource most of their manufacturing, Each could focus on research, marketing