SOURCING STRATEGY

Topics: Management, Change management, Strategic management Pages: 38 (12966 words) Published: August 11, 2014
‘Defining sourcing strategy for ‘operations’’

SOURCING STRATEGY
‘Factors that play a role in defining the sourcing strategy from an operations management view’

Master thesis Business Administration, Change Management

University of Groningen
Faculty of Management and Organization
Master Change Management

In association with

G.M. Brink
Student number: 1503952
Rhonestraat 45
8226 MJ Lelystad
06-52652816; 0320-844663
gbrink@chello.nl; G.M.Brink@student.rug.nl

Internal supevisor:
B. Emans

KPMG
P. Damen ; M. Kooper
Burgemeester Rijnderslaan 10-20
1185 MC Amstelveen
020-656 7890

G.M. Brink, August, 2006

‘Defining sourcing strategy for ‘operations’’

DEFINING SOURCING STRATEGY: ABSTRACT
Sourcing, which is one of the latest trends in organizational strategy, can generate lower costs and higher quality. However, realizing that, good configuration and coordination too choose between the different sourcing options; offshoring, outsourcing and shared service centers (SSC), is necessary. Next to that, sourcing of ‘operations’ plays a much larger role in sourcing issues than in previous years. It will therefore be investigated; ‘how a sourcing strategy for ‘operations’ is defined and which factors play a role when formulating this strategy’. According to the three interviews and respondents of two questionnaires, it can be determined that internal process characteristics, external factors and change management implications, which all three are used for the research-concept, indeed play a role in the sourcing strategy for ‘operations’. The process characteristic ‘volume’ is the largest internal roleplaying factor and determines the reasons for a choice between a SSC and outsourcing. Next to that, the external factors, ‘legislation’ and ‘technology’ determine the reasons for the same choice. Offshoring is conversely a sourcing option that is not well known yet. Therefore more research is still necessary. Furthermore it showed that resistance, competencies necessary and needed expertise, are not decisive, comparing these factors to the process characteristic and external factors. However, the choice between the three sourcing options does have influence on ‘consultant’s role’, ‘planning’, ‘leadership’ and ‘focus’ of the change resulting from the choice. Defining sourcing strategy for ‘operations’, which includes all above mentioned factors, is mainly done by higher- and middlemanagement.

Key words:

Sourcing, operations management and change management.

Research theme:

Defining sourcing strategy for ‘operations’

st

nd

1 and 2 evaluators:

B. Emans and M. Bergervoet

Word count abstract: 246

G.M. Brink, August, 2006

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‘Defining sourcing strategy for ‘operations’’

TABLE OF CONTENT
CHAPTER 1: INTRODUCTION

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1.1 SOURCING
1.1.2 Other empirical research
1.1.3 Sourcing cycle
1.2 STEP ONE OF THE SOURCING CYCLE: DEFINING SOURCING STRATEGY 1.3 SOURCING AND OPERATIONS MANAGEMENT
1.3.1 SSC
1.3.2 Offshoring
1.3.3 Outsourcing
1.3.4 Operations management

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CHAPTER 2: OPERATIONS AND DEFINING SOURCING STRATEGY

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2.1 FACTORS RELATED TO SOURCING STRATEGY FORMULATION FOR ‘OPERATIONS’ 2.2 INTERNAL PROCESS CHARACTERISTICS
2.2.1 Volume
2.2.2 Variety
2.2.3 Variation
2.2.4 Visibility
2.3 EXTERNAL FACTORS
2.3.1 Competitors
2.3.2 Technology
2.3.3 Legislation
2.4 CHANGE MANAGEMENT IMPLICATIONS
2.4.1 Leadership
2.4.2 Consultant’s role
2.4.3 Focus of change
2.4.4 Planning
2.5 CHANGE MANAGEMENT AND SOURCING
CHAPTER 3: RESEARCH METHODS

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3.1 QUESTIONNAIRE A
3.2 QUESTIONNAIRE B
3.3 PERSONAL INTERVIEWS

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CHAPTER 4: RESULTS

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4.1 RESEARCH
4.2 INTERNAL PROCESS CHARACTERISTICS
4.2 EXTERNAL FACTORS
4.3 DECISIVE FACTORS
4.4 CHANGE MANAGEMENT IMPLICATIONS
4.5 PLANNING, LEADING AND IMPLEMENTATION OF SOURCING OPTIONS CHAPTER 5: CONCLUSIONS...
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