Mro Sourcing Goes Global

In: Business and Management

Submitted By tlynettej
Words 357
Pages 2
MRO Sourcing goes global
Tammy Johnson
Project Procurement Management: INF336
Professor Lori Deere
April 09, 2012

MRO Sourcing goes global The three practices that I found to talk about from this article are; make and buy, outsourcing, and subcontracting. The best way that I could describe these steps and practices that in the company that I work are to improve using the make and buy practice. The first thing that is some of the materials and things that have there at the scooter store, like other power chairs and scooters parts to fix another scooter or power chair and then only buy new stuff when it is absolutely necessary. Most of the power wheel chairs and scooters have a lot of similar parts therefore we should not buy new parts every time we should make some of the old parts fit other chairs. Outsourcing according to the textbook “when they decide to buy something they had been making in-house previously. The outsourcing that comes to mind for the company that I am currently employed is the same thing that I spoke of in the weekly discussion. That outsourcing is the payroll being done by an outside source that is a certified public accountant (CPA) does and not anybody that works right in the company with all of us. Then nobody has to worry about friends taking care of their friend and messing over somebody else with their time and their payroll. The subcontracting that I found in the article is sort of like power wheel chairs and scooters that we sale but if they have moved and live to far away from us now there or other scooter stores that the owner is in network with but does not own that he can call and ask them if they could go out and service this chair for him and send him the bill so that he can take care of their service fee, and not have to bill all that to the patient. What I have mentioned here were three of…...

Similar Documents

Mro Sourcing Goes Global

...AIR BERLIN & EASYJET FINANCIAL COMPARISON 2009 -2011/12 MARKING GRID FOR STUDENTS |CRITERIA |Total marks |COMMENTS | | |available | | | |% | | |Quality of presentation: |7.5 |Professional presentation expected | |correct referencing / bibliography| |Font size 12 Times New Roman | | | |Standard margin sizes, headers & footers | | | |In text citations and Harvard style Referencing where appropriate | | | |All tables, graphs, charts and calculations to be placed in the appendix and | | | |cross referred to in the main text. | | | |Report style language – not essay | |Structure of Report |7.5 |Should include:- ...

Words: 916 - Pages: 4

Why Business Goes Global

...Why Business Goes Golbal? ASSIGNMENT “Why does Business go Global?” Submitted By: Mohammad Ily Submitted To: Mr. Zeb Department of Management Sciences FAST-National University of Computer and Emerging Sciences, Peshawar Why does Business go Global? Going global for a business has 3 very different meanings. One meaning is to begin selling products and services to other parts of the world. A second meaning is to begin outsourcing labor to another part of the world. And, the third meaning is to begin buying materials from another part of the world. In our previous class of Global Corporate Strategy we discussed that why business goes global? There are certain advantages and disadvantages for a business to go global that are listed below: • Cheap Resources or Labor: Most of the companies go global because of cheap labor is available in another country to gain comparative advantage. In search of low cost labor the multinational companies they look into the cost of the labor and labor productivity. Companies wants to gain competitive advantage in the market and how these companies can gain competitive advantage it depends on three things, Better, Cheaper and Faster production then the companies can gain competitive advantage. E.g of Nike who is an American company but they are manufacturing their sports shoes in different countries of the world, in some countries they are making the soal for shoes some are designing the leather for shoes etc. • Saturation of......

Words: 772 - Pages: 4

Tesco Goes Global

...Tesco goes Global Tesco goes Global International Business International Business Hugo Friedrich Hugo Friedrich ACP IBOM 2014 Spring Session ACP IBOM 2014 Spring Session Summary Introduction 3 Tesco’s international expansion began in developing countries 3 Tesco’s winning Strategy 3 Tesco’s know how for Joint Ventures 4 Innovate for winning a crowded market 5 Conclusion 6 References 6 Introduction Tesco is a multinational grocery and general merchandise retailer based mainly in the UK, Ireland, Europe and Asia founded in 1919 by Jack Cohen. Its turnover was € 80 billion in 2008. Tesco is the first group of British distribution (1,500 stores just in the UK) and the 3rd World group. Its work revolves around three areas: distribution in the UK, international distribution and financial services. This case is about Tesco’s International Growth Strategy, we will see why they decided to expand internationally, how they did it in developing and developed countries, which were the risks and which answer gave Tesco. Tesco’s international expansion began in developing countries When a firm decides to expand internationally, it has to take decisions like which market to enter, when and which entry mode to use. Tesco respected one of the most important rules in international Business, to not internationalize until they do not have a good position and control of their situation on their own market. As the company...

Words: 1310 - Pages: 6

Global Sourcing Challenges of Ikea

...The global sourcing challenges of IKEA Who does not know IKEA? Famous for its design and very affordable house furniture, IKEA is the leader on its market. Founded in 1943 by Ingvar Kamprad this business grew tremendous fast that it has become the reference in term of low-cost self assemble furniture in the world. The sourcing strategy of IKEA follows a manufacturing Code of Conduct towards its suppliers named “The IKEA Way in Purchasing Home Furnishing Products” (IWAY) . Besides this code, the strategy is rather well established especially regarding the relationships between the company and its suppliers from the economically developing countries. But the question is; are Ikea’s international procurements processes efficient? Can they be improved? This essay will focus on Ikea’s global sourcing’s tradeoffs and will highlight the way they can be enhanced. The first part of this essay will describe the regular sourcing process of IKEA including the strategy, the second part will emphasize how the sourcing should be done to be successful and the last part will provide recommendations about the processes according to the analysis. For a company, global sourcing is basically choosing different suppliers all around the world in order to use worldwide efficiencies and reduce costs. Global sourcing offers various advantages such as low cost materials and skilled labour, diminution of lead times, and also economical advantages like low taxes or low trade tariffs. These......

Words: 1056 - Pages: 5

Case Study: the Global Sourcing

...Case Study: The Global Sourcing Wire Harness Decision Calvin Smith Westwood College Professor Rivers MGMT 350 2/8/15 The Global Sourcing Wire Harness Decision 1. Quote 1 Original Wire Quote: Unit price = $30 * Packing costs = $.75 per unit * Tooling = $6,000 onetime fixed charge * Freight cost = $5.20 per hundred pounds Yearly Unit Cost = ((monthly demand*12) * (unit cost + packaging cost)) + tooling charge Yearly Unit Cost = ((60000)*(30+.75)) + 6000 Yearly Unit Cost = (60000*30.75) + 6000 = $1,851,000 Yearly Unit Cost = $1,851,000 Unit Cost = Yearly Unit Cost / Yearly Demand Unit Cost = $1,851,000 / 60,000 Unit Cost = $30.85 Yearly Freight Cost = # of units * unit weight * freight cost Yearly Freight Cost = 60,000 * 10 * .0520 Yearly Freight Cost = $31,200 Unit Freight Cost = $31,200/60,000 = .52 Total Unit Cost = Unit Cost + Freight Cost Total Unit Cost = $30.85 + $0.52 Total Unit Cost = $31.87 2. Quote 2 2. Happy Lucky Assemblies Quote: * Unit Price = $19.50 * Shipping Lead Time = Eight Weeks * Tooling: $3,000 Yearly Unit Cost = ((monthly demand*12) * (unit cost + packaging cost)) + tooling charge Yearly Unit Cost = ((60000)*($19.50+.00)) + 3,000 Yearly Unit Cost = (60000*19.50) + 3000 Yearly Unit Cost = $1,173,000 Unit Cost = Yearly Unit Cost / Yearly Demand Unit Cost = $1,173,000 / 60,000 Unit Cost = $19.55 Monthly Freight Cost = $41,366 Unit Freight Cost = $41,366/5000 =......

Words: 377 - Pages: 2

Celluclear Wireless Goes Global

...CelluClear Wireless Goes Global Christopher L Kearney University of Phoenix ECO/GM 561 International Economics Watson T. Ragin July 4, 2011 Celluclear Wireless Goes Global Kendra Sherman, a business development specialist for Celluclear Wireless has secured an order for 100, 000 cell phones from Russia, who has a promotion with a telephone provider there, the order must be ready in the next 90 days. These phones are somewhat identical to the Alpha Model currently produced by Celluclear, which runs $20 a unit. However, the Russian Company is only willing to pay $15 per unit for the order that has been secured by Kendra. Kendra is eager about meeting with Lars Norman the production manager to ascertain whether or not she can win and deliver on such a big order in the 90 days. Celluclear Wireless is a company who has conducted business extensively in the United States; however, the production manager Lars Norman is considering going global and outsourcing to Japan, who is widely known for manufacturing cell phones and has received awards for his outstanding product processes. The Japanese Manufacturer further claims that the product would be identical to Celluclear’s current product and would cost at least $14 a unit. If Lars decision is to go with the Japanese Company this would be a substantial savings because the Russian Company is willing to pay $15 per unit, so there would be a $1 profit on each unit. Lars Norman, production manager for Celluclear must decide......

Words: 1309 - Pages: 6

Global Sourcing The co-founder is actually Michael Marks and later joined by Thomas Spencer in 1894 to create Marks & Spencer. The main product which produced by Marks & Spencer is clothing line and then expand to food industries. Marks & Spencer are successful because of they know how to apply the sourcing strategies within their supplier around the world. There are two types of strategies implemented by Marks & Spencer, combination of in-house and third party manufacturing for food s line and third party contracting or sourcing for clothing section. Tesco is the choice from us to compete with Marks &Spencer; Tesco had their own sourcing strategy to compete with their rival within the same industries line such as group food sourcing (GSF) and regional supply base making the right product at affordable pricing. Tesco do developed its own brand which is cheaper in price and better qualities control. The last sourcing Strategies is Sourcing global, which they have contract with the supplier around the world. The sourcing strategy for Marks and Spencer has disadvantages and advantages which affect the company performance. Lastly, we recommended enhancement in their sourcing strategy by comply with China supplier in Clothing line or green field investment in China. Company Background (Mark & Spencer) The years of Marks & Spencer established was in 1958, and it has since become an icon of quality and style. At the beginning, Marks & Spencer were trading......

Words: 4197 - Pages: 17

Will Bury Goes Global

...Economic Concepts The Economic Concepts in the Will Bury Goes Global Scenario are labor, entrepreneurial ability, and capital. By determining the time it will take to digitalize hardcopy books Will Bury is focusing on the labor. Because currently Will Bury himself is doing the entire work for digitalizing Will needs to concentrate on the labor factor of economic concepts and recruit trained employers for digitalizing hardcopy books. Will wants to maximize the profits; therefore Will has a dilemma on labor aspect because employing people will cost Will Bury to pay for the wages. Capital is the next economic concept in Will Bury Goes Global Scenario. According to McDonnel-Brue,” The capital includes all manufactured aids used in consumer services and producing consumer goods”(McDonnel-Brue, p. 23). For Gaining profits in digitalizing hardcopy books business Will Bury must develop facets and equipments for transforming the printed books into the digital soft copies. Will is capturing the difference between capital verse consumers when changing into digital sound from written copyrighted print. Entrepreneurial ability is the last economic concept in the Will Bury Goes Global Scenario. Entrepreneurial ability is factoring the risks into one and therefore entrepreneurial ability is the most important economic concept. According to McDonnel-Brue,” Entrepreneur is an innovator assuming risks for initiating projects and takes strategic decisions in business” (McDonnel-Brue, Pgs......

Words: 1181 - Pages: 5

Amazon Goes Global

...International Management (Fall Semester) Individual Case Write Up 1: Amazon Goes Global 1. Why did Amazon choose the United Kingdom as its first entry location? Why not other countries such as Canada and Austrlia? With the emergence of a global marketplace, Amazon has since ridden on the waves of the opportunities that comes with globalisation. After more than a decade of expansion, Amazon’s international operations accounted for about 43 per cent of its revenue, bringing in $26.28 billion in 2012. This shows the significance of targeting the international markets. However, entry into foreign market does not come without risks and costs that resulted from barriers created by distance. The CAGE Framework of distance by Ghemawat explained distance as 4 main attributes – Cultural, Administrative, Geographic, Economic.1 To address these risks and costs, it is crucial to first assess the extent and type of differences between the USA market and the United Kingdom market. Amazon’s entry into United Kingdom (UK) can be attributed to minimal distance and various similarities, which allowed Amazon to significantly reduce risks and costs. Primarily, the UK market has a lot of similarities to the US market in terms of cultural, administrative and economic distance. UK has the second most number of native English speakers (60 million), after US (231 million), and is also the place where English was first spoken. Since books were the primary products sold by Amazon, the......

Words: 1802 - Pages: 8

Global Sourcing

...Global Sourcing What are some of the risks of buying overseas that one can avoid by buying from domestic sources? Some risks of buying overseas that can be avoided through buying from domestic sources include: Conducting business with immature suppliers causes risk as you do not have the same relationship and history with them that you do with suppliers you have worked with for years. You are unable to have regular ‘in person’ meetings and make assumptions that can taint your potential to have a great relationship. Unreliable delivery is also a risk which can be avoided (or reduced) by procuring from domestic sources. When a supplier is closer, or domestic, your timelines are shorter and more predictable. Quality can be a risk as you might not get the same quality you expected or ordered. It is more difficult to return and/or exchange the product. There is risk with foreign currency due to the fluctuations in the rate of foreign currency Transaction costs and the other costs related to communication and monitoring the network of suppliers, intermediaries and logistic providers can be reduced by buying domestically. 2. Purchase contracts issued by Barbara’s firm provide for the goods to be produced, shipped, and received within five months of the date the contract is issued. Should the monetary amounts specified in the contract be in U.S. dollars or in the currency of the nation where the manufacturer is located? Why? When your business transacts in......

Words: 1115 - Pages: 5

Ikea Global Sourcing Challenge

...forward, IKEA needs actively be working with NGO’s in order to combat child labor. There needs to be a long-term strategy to address child labor issues in the supply chain. In order to show the public that corporate responsibility is important to IKEA, the company should focus on creating a division that is focused on social and environmental issues. The triple bottom line focuses on social, environmental, and economic factors in the supply chain (exhibit 1). It has become increasingly important to consumers that companies are using responsible practices in sourcing and producing their products and services. When the issue of child labor was first brought to IKEA’s attention, IKEA was completely unware of the topic/issue. The CSR department would help avoid future issues by being involved in the discussion of current issues and proactively pursuing solutions. In order to maintain their low prices IKEA has moved to global areas that have the cheapest supplies that often correlates with cheap labor. India, Pakistan, and Nepal are known for their social issues about human rights and once IKEA entered that area, there was no way to avoid these issues. Currently, IKEA does not have their own manufacturing facilities which leads to IKEA using manufacturers globally that is more complex and hard to track. It would be feasible for IKEA to set up their own manufacturing facilities. IKEA already has a practice of assuring their quality output and reliable delivery by bringing its......

Words: 1480 - Pages: 6

Ikea's Global Sourcing Challenge

...IKEA’s Global Sourcing Challenge IKEA, one of the world’s largest specialized furniture retailers, has been presented with a large issue within their operations. In 1995, a German TV station released an investigative report which exposed one of the suppliers for IKEA rugs for exploiting child labor in their factory. A recent addendum was signed by all IKEA suppliers which forbid the use of child labor (Bartlett & Sjoman, p. 1, 2006), so this incident has called the company to make an action based on the accusations at hand. The amount of turnover that is accounted from Indian rugs for IKEA is small on the full scale, and made the company question whether or not the product line was worth the profit potential. The following will be an analysis of the history of IKEA’s manufacturing, external forces related to the presented issue, rising issues, and recommendations for the company’s future moves. History of IKEA’s Manufacturing Though IKEA is one of the largest brands in the furniture industry, the company has been involved with some environmental issues related to their manufacturing. In the 1980s, IKEA’s products were subject to investigation as they were observed to emit more than allowed levels of formaldehyde (Bartlett & Sjoman, p. 5, 2006). The issue occurred from suppliers buying materials from sub suppliers, which resulted in the product not passing the regulations placed by legislation. The company began to change the way they worked with their suppliers...

Words: 1231 - Pages: 5

Abc Company Goes Global

...754 • Case 24 • ABC Chemical Company Goes Global The ongoing economic recession in Japan will continue to erode consumer purchasing power and confidence; luxury goods will suffer as consumers move toward cheaper products. This is already becoming evident: consumption of cognac and premium whisky is declining in Japan. Since TWO DOGS was launched in 1998, there has been massive growth in the sales volume of cheaper products, such as ‘‘Can Chu-Hi’’ and ‘‘Hyoketsu Chu-Hi’’. These locally made Japanese brands are, in convenience stores, almost half the price of fully imported TWO DOGS. DISCUSSION QUESTIONS 1. Should TWO DOGS maintain its premium price and thus risk losing volume growth to cheaper products during the recession? 2. What effect would lowering its price have on its brand positioning? 3. Would lowering its price require TWO DOGS to change to a licensing strategy? If so, should local production be in Japan? Or in nearby Asian countries with lower manufacturing costs, such as China or Thailand? 4. What other options does TWO DOGS have? Could the company change to a multi-brand strategy by introducing a new brand targeting the low-end segment? C ASE 24 ABC CHEMICAL COMPANY GOES GLOBAL Driven by competitive pressures, and the attractiveness of the industry’s fastest growing market in the world, a U.S.-based chemical manufacturer, ABC Chemical Company (name changed to maintain confidentiality) considered expansion into Asia, specifically, China. William Smith......

Words: 6478 - Pages: 26

Global Sourcing

...Global Production and Sourcing. Introduction: For this project I will be looking into the specific requirements TU at Sainsbury’s require around specific product types. I will be looking into Sainsbury’s TU toddler boy’s jersey wear. Researching into two countries of origin I will be looking into what management conditions, technological and economic issues that surround the choice from where Sainsbury’s choose to and how they are sourced and manufactured. Sainsbury’s was founded in England, London in 1869 by John James Sainsbury, and grew rapidly during the Victorian era. Sainsbury’s grew to become the largest grocery retailer in 1922, pioneered self-service retailing in the UK, and had its peak of success during the 1980s. However in 1995 Tesco overtook Sainsbury’s to become the market leader, and Asda became the second largest in 2003, putting Sainsbury’s into third place. (Museum of London. Unknown. The Sainsbury’s archive [Online] 22.03.2012) Sainsbury’s launched its TU fashion range in 2004, and is now housed in over 300 stores nationwide. Over the past six years, the retailer has seen its share of the £9.9bn value fashion market more than treble.  The TU clothing range remains the UK’s seventh largest clothing brand by volume, TU kidswear however has gone from seventh place in 2011 to the UK’s sixth largest in 2012. (Drappers online, 2012, Sainsbury’s expected to reveal further gains in clothing market share. [Online] 22.03.2012) The Sainsbury’s TU......

Words: 5637 - Pages: 23

Mro Sourcing Goes Global

...MRO sourcing goes global Harold Montilla Instructor Lori Deere INF 336 Project Procurement Management May 14, 2012 MRO sourcing goes global It is critical for any organization or business to seriously analyze and implement maintenance, repair and operations (MRO) goods and services that will help the company achieve it organizational goals. Johnson, Leenders, & Flynn (2010) explain "Identifying and streamlining key business processes to reduce costs, grow revenues, and manage assets represents an opportunity in most organizations" (p. 77). This is important when applying the concept to maintenance, repair and operations (MRO) goods and services for any company or organization . Scott Singer (as cited in Avery, 2009) tells us "You want a superior unit price, a fair and reasonable mark up and a fulfillment model that provides the service you need" (line 3). With the advent of the globalization of world markets, companies have been forced to transform their strategic plan to accommodate these new emerging markets and competitors around the globe. This has forced companies to direct their efforts to create a strategic plan for taking care of their maintenance, repair and operations (MRO) goods and services associated to the sourcing strategy. In efforts to alleviate much of the challenges to maintenance, repair and operations (MRO) goods and services of The Department of Defense (DoD), the Defense Logistic Agency (DLA) was created to serve as a government......

Words: 808 - Pages: 4

NoPhone -This Won't Let You Use Your Phone | Beating Heart | Emmerdale Season 49 Episode 287