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Supplemental Case Analysis

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This reading explains and identifies the different relationships between buyers and suppliers. It also describes how companies need to use strategy when choosing suppliers and interacting with each other because it makes for a more responsive and successful supply chain. There is a need to drop the “us vs. them” mentality because companies need to build networks and partnerships in order to be successful nowadays. The reading gave details on how four highly successful companies used strategic sourcing options to meet the demands of their supply chain networks. Firstly, the Chicago based FMC Corporation met their demands by choosing a single source to supply them. The corporation consolidated all of its industrial metal purchases and put it up for bid via reverse auction. This was a great option for reducing cost because instead of purchasing small batches from several suppliers at higher prices, the corporation could now purchase large batches from a single sources at discounted prices. The downside is that having only one supplier could be detrimental to the supply chain if something happens that prevents the supplier from delivering the FMC Corporation won’t have any other suppliers to fill the void. The FMC Corporation did their due diligence and had enough faith in the supplier to go with them. The second method of strategic sourcing that the reading describes is Apple’s supply chain strategy which is built on speed to market and efficiency. In order to be ready for the Christmas season Steve Jobs prepaid fifty million dollars worth of holiday air freight space. Doing this blocked competitors from using the airspace whether Apple used it or not and it left competitors with the slower option of using of sea freight shipping to get their products to market. The downside to this method is that it is very expensive to do. The positive is that it made sure that

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