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Multi Sourcing vs Single Sourcing,[object Object],Samarth Gulati91047,[object Object],Shefali Srivastava 91050,[object Object]
Problems in Supply Chain ,[object Object],Disruptions: natural disasters, strikes, terrorism attacks,[object Object],Uncertainty,[object Object],Vulnerability,[object Object],Complexity,[object Object]
What should be done,[object Object],Build a resilient supply chain,[object Object],Prepare the firm against disruption,[object Object],respond to uncertainty effectively,[object Object],secure the supply-chain,[object Object]
Multiple Sourcing,[object Object],Single Sourcing,[object Object]
HIGH,[object Object],SUPPLY RISK,[object Object],HIGH,[object Object],LOW,[object Object],LOW,[object Object],FINANCIAL IMPORTANCE,[object Object]
Need for Single Sourcing,[object Object]
Need for Multiple Sourcing,[object Object]
Multiple Sourcing vs Single Sourcing,[object Object],Multiple Suppliers,[object Object],PRICE,[object Object],INDIRECT COSTS,[object Object],Single Supplier,[object Object],PRICE,[object Object],INDIRECT COSTS,[object Object]
Ford Case,[object Object],	In 1998, supply problems at Ford resulted in the temporary, three-day shutdown of the Fiesta and Puma manufacturing facilities in Cologne and Dagenham, Germany. ,[object Object],	The source of the supply problem was a computer glitch at Ford’s provider of door and trunk latches. ,[object Object],	Those three days cost Ford approximately £70 million in labour costs and the production of about 7000 vehicles.,[object Object]
Ericsson vs Nokia,[object Object],Philips suffered a fire in its plant of Alburque in march 2000.,[object Object],Philips’s site became unable to produce the computer chips that its customers, Nokia and Ericson, needed to produce mobile phone handsets. ,[object Object],Nokia realized very early that there was a problem in the production of chips, and pressured Philips to reroute capacity. ,[object Object],Ericsson detected the problem slowly and when it turned to Philips, it was too late as Nokia had already claimed all the production. ,[object Object],The damages were very important for Ericsson as Philips was its only supplier:,[object Object],Ericsson lost $1.8B, and almost 4% of market share to Nokia.,[object Object]
Conclusion,[object Object]
Multiple Sourcing Vs Single Sourcing

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Multiple Sourcing Vs Single Sourcing

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