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One of the first decisions a firm must decide is to “make-or-buy” the components or subassemblies that will go into their final product. Outsourcing is becoming more prevalent in industry today but brings with it both benefits and risks. Once a firm decides to outsource, then six strategies can be used to balance these benefits and risks.
Review the six sourcing strategies. Then, select a company and research their sourcing strategies. Discuss the strategies used by the firm. Include the benefits and outline how they balance the risks with outsourcing of their product.
Post & Respond
Post your selected company’s sourcing strategies and include at least one reference to support your arguments. Review your classmates’ posts and respond to at least two of them. In your response:
- Discuss whether you agree or disagree with the sourcing strategy used by the company outlined in the original post.
- Suggest alternate strategies that they could have used.