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TrailFrames Chassis case at the end of Chapter 10: Using the case information and the data in Table 10-4 W. Complete an insourcing/outsourcing analysis -- Ref: Table 10-2 and apply the steps found in Figure 10-1. 2. Prepare the report as described (Due Day 7 - See grading rubrics) e E $ SAMSUNG 342 chapter 10 Sourcing and Supply Management Step 1. Assess Fit with the Firm's Core Competencies core Not core FIGURE 10-1 Insourcing/Outsourcing Decision Process Insource Not Suitable Step 2. Evaluate the Suitability for Outsourcing Suitable Step 3. Evaluate the Reasons for Outsourcing Good reasons Insufficient reasons Step 8. Monitor the Decision and Revise it as Necessary Step 4. Assess All Relevant Quantitative Costs Step 5. Assess All Qualitative Factors Step 6. Review the Capabilities of Suppliers Step 7. Make and implement a Decision Insource Buy from Current Supplier Buy from New Supplier Step 2. Evaluate the Suita dig lower prices. Spend analysis reports are typically available through e-procurement systems. When doing a spend analysis you should consider all purchases, even those that tradi- tionally have not been made by supply managers. For example, purchases made in human resources management (worker benefits programs), marketing and sales (advertising), information technology (hardware and software), and other functional areas should be included in spend analysis, A market analysis gathers data on the market's structure, including the number of sup- pliers, the number of buyers, and the nature of competition. This analysis provides infor- mation to assess the level of supply chain risk and to help develop an appropriate sourcing strategy, in coordination with other functions. Future price increases or decreases can be forecast using market analysis data. Analyze Spend & Markets Develop Sourcing Strategy Identify Potential Suppliers Assess & Select Suppliers Manage Relationship FIGURE 10-2 Typical Strategic Sourcing Process Source: Adapted from L. Smeltzer, J. Manship, and C. Rossetti, "An Analysis of the Integration of Strategic Sourcing and Negotiation Planning." The Journal of Supply Chain Management 39, no. 4 (2003). p. 18. ILI recommendation. Only an attractive offer to take over the u for the low end of TFC's product line. Furthermore, Com- puter Images has offered to work with TFC as a virtual Ellr Jou Mar Eng Tra We TABLE 10-4 Information for the Analysis TFC Make Option Computer Image Proposal Not applicable Contract Period 3 years with option to cancel after first year with 45 days warning) $225 per chassis in BL ca Cost per Design sa corporate overhead) 2,000 chassis maximum (assuming stable growth in other chassis lines) Number of Chassis per Year . 1.000 minimum to 2,500 maximum (1.250 expected TFC must commit to 1,250 designs per year $300,000 (computer systems, training, establishing computer linkages)