Titlebook: Strategic Sourcing in the New Economy; Harnessing the Poten Bonnie Keith,Kate Vitasek,Jeanne Kling Book 2016 The Editor(s) (if applicable)

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Oligarchy

Investment-Based Sourcing Modelsmson, organizations that select a make or insource strategy select a structure that, by default, creates a hierarchy. We think of insource decisions in terms of investment-based models because organizations consciously open their wallets to invest in the capabilities needed for securing supply sources for goods and services.

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Considerations for Crossing the Continuumstep strategic sourcing process. (Exhibit A1 in the appendix presents the most popular models.) But as we noted in chapter 1, existing models have many weaknesses, resulting in lower-than-expected performance.

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NAIVE

Sourcing Is a Continuumdividual members began to specialize. That led to a division of labor, improved skill and knowledge, and better workmanship. People with specialized skills traded with each other for goods and services they needed to survive. They did not try to be totally self-sufficient; they relied on each other’

Nuance

Trekking Through Transactionstion-based model is a simple exchange of goods/services for a set price driven by market competition. Successfully completed transactions trigger payment. Transaction-based approaches are usually highly efficient. As strategic management guru Gary Hamel observes, an efficient transaction-based syste

NAV

LATE

alliance

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Selecting the Right Sourcing Business Model For Your Situationneed a sophisticated relationship to source paper clips. A straightforward transactional deal works just fine. Likewise, as Adrian Gonzalez points out in chapter 5, an organization shouldn’t rely on an electronic auction to find a third-party logistics service provider to provide $100 million of log