I Dependency on capacity I Firm has the knowledge and the skills required to produce the component I For various reasons decides to outsource. I Dependency on knowledge I Firm does not have the people, skills, and knowledge required to produce the component I Outsources in order to have access to these capabilities. I Toyota seems to vary its outsourcing practice depending on the strategic role of the components and subsystems I The more strategically important the component, the smaller the dependency on knowledge or capacity.
Product Architectures. I Modular product I Made by combining different components I Components are independent of each other I Components are interchangeable I Standard interfaces are used I Customer preference determines the product configuration. I Integral product I Made up from components whose functionalities are tightly related. I Not made from off-the-shelf components. I Designed as a system by taking a top-down design approach.
I Evaluated on system performance, not on component performance I Components perform multiple functions. I Customer Importance I How important is the component to the customer? I What is the impact of the component on customer experience? I Does the component affect customer choice?
I Competitive Position I Does the firm have a competitive advantage producing this component? I Capable Suppliers I How many capable suppliers exist? I Architecture I How modular or integral is this element to the overall architecture of the system? I To achieve the same impact on net profit through higher sales I Pfizer would need to increase its revenue by 4. I The smaller the profit margins, the more important it is to focus on reducing procurement costs. Appropriate Strategy.
I Depends on: I type of products the firm is purchasing I level of risk I uncertainty involved. I Issues: I How can the firm develop an effective purchasing strategy? I What are the capabilities needed for a successful procurement function?
I What are the drivers of effective procurement strategies? I How can the firm ensure continuous supply of material without increasing its risks?
I Top right quadrant: I Strategic items where supply risk and impact on profit are high I Highest impact on customer experience I Price is a large portion of the system cost I Typically have a single supplier I Focus on long-term partnerships with suppliers. I Top left quadrant: I High supply risk but low profit impact items. I Bottleneck components I Do not contribute a large portion of the product cost I Suppliers have power position I Ensure continuous supply, even possibly at a premium cost I Focus on long-term contracts or by carrying stock or both.
I s: Suppliers in Mexico, Spain, and Portugal. I Challenge: I Framework that helps organizations determine the appropriate supplier footprint.
I Functional Products I Focus should be on minimizing total landed cost I unit cost I transportation cost I inventory holding cost I handling cost I duties and taxation I cost of financing I Sourcing from low-cost countries, e.
I Innovative Products I Focus should be on reducing lead times and on supply flexibility. I Exponential growth in demand for Flash memory resulted in high demand uncertainty I Uncertain price and supply I Significant financial and supply risk. I Commitment to purchase large amount of inventory I huge financial risk through obsolescence cost.
I Mid to late 90s: B2B automation was considered a trend that would have a profound impact on supply chain performance. I I Multiple e-markets established in various industries I Promised: I increased market reach for both buyers and suppliers I reduced procurement costs I paperless transactions. I Many manufacturers desperately looking to outsource their procurement functions. I Procurement process highly complex, significant expertise required and expensive I B2B transactions an enormous portion of the economy much larger I B2B marketplace highly fragmented I a large number of suppliers I competing in the same marketplace I offering similar products.
I Initial offerings of independent e-marketplaces I Either a vertical-industry focus or a horizontal-business-process or a functional focus. I Companies offered: I expertise in the procurement process I ability to force competition between a large number of suppliers. Value Proposition to Buyers. I Serving as an intermediary between buyers and suppliers. I Identifying saving opportunities. I Increasing the number of suppliers involved in the bidding event.
I Identifying, qualifying, and supporting suppliers. I Conducting the bidding event. The Result. I Relatively small suppliers could expand their market horizon I Allows suppliers to access spot markets. I Allows suppliers to better utilize their available capacities and inventories.
Issues of the Benefits. I Do the benefits compensate for a reduction in revenue? I Suppliers, especially those with brand-name recognition, may resist selling their services through e-markets.
What about the e-markets Themselves? I Transaction fees pose serious challenges to the market maker: I Sellers resist paying a fee to the company whose main objective is to reduce the purchase price. I Revenue model needs to be flexible enough so that transaction fees are charged to the party that is more motivated to secure the engagement.
I Buyers also resist paying a fee in addition to the purchase price. I Modification of value proposition I Initial proposition was market reach I Changed through creation of four types of markets. I Expanded value proposition by offering additional services: I inventory management I supply chain planning I financial services.
I Examples: I Instill. I Pefa. I Key activities: I to run reverse auctions I on-line supplier negotiation. I Examples: I Subway restaurant franchise I 16, members in over 70 countries I Allows the different restaurants to purchase from over suppliers. I Motorola I Implemented supplier negotiation software I Allows firm to conduct bids, negotiate and select an effective procurement strategy. Consortia-based e-markets.
I Similar to public e-markets I Established by a number of companies within the same industry. I Focus on content I Achieved by integrating catalogs from many industrial suppliers. Summary I Outsourcing has both benefits and risks. I Variety of criteria including customer importance, technology clockspeed, competitive position, number of suppliers, and product architecture.
I Procurement strategies vary from component to component I Four categories of components, strategic, leverage, bottleneck and non-critical items. I Four categories important in selecting suppliers: component forecast accuracy, clockspeed, supply risk, and financial impact. Open navigation menu. Close suggestions Search Search. User Settings.
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Original Title week Offshoring is a new form of outsourcing where businesses relocate back-office operations in overseas facilities where labour costs are lower.
Keynote Glossary Globalization: A process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. Cost Savings: An action that will result in fulfillment of the objectives of a purchase, at a cost lower than the historical cost or the projected cost.
Glossary of Keynote: Operating Costs: Expenses associated with the maintenance and administration of a business on a day-to-day basis. Outsourcing: A practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally. Business processes: A series of logically related activities or tasks such as planning, production, or sales performed together to produce a defined set of results.
Glossary Keynote:. Offshoring: he moving of various operations of a company to another country for reasons such as lower labor costs or more favorable economic conditions in that other country. Back-office : The internal operations of an organization that are not accessible or visible to the general public. Labour costs : The cost of wages paid to workers during an accounting period on daily, weekly, monthly, or job basis, plus payroll and related taxes and benefits if any.
Reading: Going Offshore. In other cultures decisions are made by consensus after everyone contributes suggestions and opinions. What is common in your country? How might this difference cause misunderstanding in multicultural teams?
Terima Kasih Dra. Harisa Mardiana Soehanadi M. In order to gain a competitive advantage over rivals, companies create brands that represent aspirations and a desirable image of life that the customer would like to identify with. Glossary of Keynote: Marketing mix: Marketing mix is often crucial when determining a product or brand's offer, and is often associated with the four Ps: price, product, promotion, and place.
Natural resources: Materials provided by the Earth that humans can use to make more complex human-made products. Construction projects: The overall planning, coordination, and control of a project from beginning to completion. Construction Project is aimed to do a client's requirement in order to produce a functionally and financially viable project.
Industrial facilities: A property as a structure with attachments and installations constructed to serve a particular industrial processing function source of quote. Read the passage about Marketing Brand and please look at first the glossary to understand the words of reading.
Answer the questions 1, 2, 3 on page 6. Complete the magazine article with the following words with the words in the box on page 8. The daily is only for a week. Other cultures prefer to modify statements with understatement somewhat, slightly and exaggeration or even leave the true meaning unsaid. How might this difference cause misunderstanding in multicultural teams. Loans from international organizations enable governments to exploit their natural resources and to invest in construction projects and industrial facilities.
Environmentalists oppose development which produces pollution and endangers the health of local people and depletes resources. Glossary of Keynote: Benefit: A benefit that can be expressed numerically as an amount of money that will be saved or generated as the result of an action.
Making a business case for a new strategy or product idea usually involves pointing out the economic benefits of the proposal to decision makers, enabling them to measure the financial effects of the proposed change.
Some countries have more or less developed economies than others. Look at page 5 and try to understand, do not answer it and do not send it to me. Answer the question on page 6, 8, 9, The answer should be submitted to quiz on e- learning section UMB. Language Check: Modal verbs. Career Skills:. Showing Cause and Effect: When talking about Consequences of events or situations it is useful to explain the reason why we think something happened or will happen in the future.
Pay deals are negotiated by remuneration committees compensation committees in the US and are voted on by shareholders. Glossary of Keynote: Fat Cat: A slang word used to describe executives who earn what many believe to be unreasonably high salaries and bonuses.
Severance deal: the compensation that an employer provides to an employee who has been laid off, whose job has been eliminated, who through mutual agreement has decided to leave the company, or who has parted ways with the company for other reasons. Golden Parachute: Also known as "change-in-control benefits. Future Form We use different verb forms to talk about the future. We will succeed. Future form. Make about 5 slides. All of those should be submitted to quiz e- learning Universitas Mercu Buana.
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