A number of organizations procure major portions of their activities from other companies as these tasks...

 

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A number of organizations procure major portions of their activities from other companies as these tasks cannot be performed in-house. It is estimated that about 80% of most organization's project scope is procured from other organizations because most of the tasks cannot be performed in-house. However, it is worth noting that some of these tasks that are subcontracted to other organizations are the high-risk portions of the project which most times result in poor project performance. When the works are completed and management assesses what went wrong with their project performance, it is often found out that the work which was contracted or subcontracted to another company was the one that adversely impacted overall project performance. Sadly, procurement managers have the ultimate responsibility for the product of service's technical performance, the cost and schedule results, even when most of the sourcing was done by the procurement department. REQUIRED a) Discuss the role of strategic sourcing in the procurement of goods, services and projects and how it can address some of the issues mentioned in the scenario above (15 marks) b) Considering that an organization has alternatives to procure portions of the projects using different strategies, discuss the rationale, including the advantages and risks of using the following sourcing strategies: 1. Make-or-buy strategies 2. Insourcing versus Outsourcing strategies A number of organizations procure major portions of their activities from other companies as these tasks cannot be performed in-house. It is estimated that about 80% of most organization's project scope is procured from other organizations because most of the tasks cannot be performed in-house. However, it is worth noting that some of these tasks that are subcontracted to other organizations are the high-risk portions of the project which most times result in poor project performance. When the works are completed and management assesses what went wrong with their project performance, it is often found out that the work which was contracted or subcontracted to another company was the one that adversely impacted overall project performance. Sadly, procurement managers have the ultimate responsibility for the product of service's technical performance, the cost and schedule results, even when most of the sourcing was done by the procurement department. REQUIRED a) Discuss the role of strategic sourcing in the procurement of goods, services and projects and how it can address some of the issues mentioned in the scenario above (15 marks) b) Considering that an organization has alternatives to procure portions of the projects using different strategies, discuss the rationale, including the advantages and risks of using the following sourcing strategies: 1. Make-or-buy strategies 2. Insourcing versus Outsourcing strategies

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a Role of strategic sourcing in procurement Strategic sourcing is a proactive and comprehensive approach to procurement that focuses on obtaining goods services or projects in the most effective and e... View the full answer