Summary Lectures Leading and managing supply chains

Strategic sourcing and purchasing
RBS – Lectures – 2020/2021 - MSCSTS119




Table of Contents
Week 1 - Business Model Canvas ........................................................................................................................ 2
Week 2 - Business strategy.................................................................................................................................. 5
Week 3 - strategic sourcing ............................................................................................................................... 13
Week 4 - Sourcing strategies and business canvas ........................................................................................... 19
Week 5 - risk in supply chain ............................................................................................................................. 22
Week 6 - Supplier management and development........................................................................................... 28
Week 7 - Quality management, benchmarking and improvement methods .................................................... 33
Week 8 - Sustainability and procurement ......................................................................................................... 38

,Week 1 - Business Model Canvas
Strategy = defines longer-term goals but they are more concerned with how those goals should be achieved.
Strategy is the means to create value. A good strategy is one that works, one that guides purposeful action to
deliver the required result
- plan, execution, route an objective, long-term, ways to do things, analyse , mission and vision, values,
, method, tactics etc.

Business strategy: it correlates to other business terms




- Vision: what is the purpose of this organisation
- Mission: what do we want to achieve
- Values: what are our learning values
- Strategies: how will we achieve our vision and
mission

Business strategy: it is a re-iterative process
- Strategy à execution à success
- Strategic planning cycle = about adaption. Yearly
you have to revise your strategies to make them
compatible to your environment. They are not a
fixed given, they change over time.
- A strategy is good and communicable if it is clear
and short. You can have an implementation
guide line, but the goals have to be clear and
strong



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, From To
Thick studies Concise papers
Precise roadmaps Main directions
Long term plans Shorter term / next steps
Top down Bottom up (also)
Inside out Outside in (also)
Execution of plans Implement adaptability
Company thinking Supply chain thinking
Profit driven Sustainable value
Product focus Competence focus

Business canvas model = a strategic management and entrepreneurial tool. It allows you to describe, design,
challenge, invent and pivot your business.




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, Part Questions
Customer segments For whom are we going to create value?
Value propositions What value do we deliver to the customer?
Which one of our customer’s problems are we helping to solve?
Which customer needs are we satisfying?
Channels Through which channels do our customer segments want to be reached?
How do we integrate them with customer routines?
Customer relationships What type of relationship does each of our customer segment expect us
to establish and maintain with them?
Revenue streams For what value are customers really willing to pay?
For what do they currently pay, and how are they currently paying?
How would they prefer to pay?
Key resources What key resources do our value propositions require?
And our distribution channels, customer relationships and revenue
streams?
Key activities What key activities do our value proposition require?
Our distributions channels, customer relationships, revenue streams?
Key partnership Who are our key partners?
Who are key suppliers?
Which key activities do partners perform?
Cost structure What are most important cost inherent in our business model?
Which key resources are most expensive?
Our key activities?




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