Best Approaches to Product Sourcing and Supplier Evaluation


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Essay #: 070107
Total text length is 17,848 characters (approximately 12.3 pages).

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Best Approaches to Product Sourcing and Supplier Evaluation
Similar to the process of outsourcing labor, the process of outsourcing product development, production and fulfillment allows an organization to focus on its existing policies and practices while an external firm focuses on developing innovative ideas. Outsourcing production allows the organization to save money on R&D and avoid the problems associated with restructuring the company around a more flexible business model (Kennedy and Sharma). Of all of the core functions in most companies, however, the process of outsourcing innovation has the greatest competitive value but is often managed with the least discipline. The future of production lies not just in R&D, but in a...
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