As said in a preceding article, a lot of terms and concepts exist to define or specify sourcing models. (If you are interested in the definition of these concepts, read our article on some sourcing models concepts). But all these concepts can be reduced to two main underlying dimensions that are playing a major role in characterizing them. Understanding these dimensions helps you to choose the right model and comprehend its usage and implementation. As you will see they encompass the internal sourcing as well as the external sourcing of products/services. But......
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The make-or-buy exercise is a fundamental and essential technique for sourcing and procurement strategic decisions. It should be done rationally and with objectivity, and be supported by facts and figures. Keep also the two major underlying principles and the seven sourcing business models in mind. The exercise is not only about deciding to make or to buy. It is further to decide among or compare the different models and solutions of sourcing. The process is quite straightforward and simple, but its application requires some conditions and points of consideration. ......
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When we start discussing the sourcing models, a lot of concepts and denominations are raised: single source, multi-source, gain share, mutual, joint venture, social impact bounds, offshore, nearshore, insourcing, outsourcing, shared services, service integration, internally managed, mixed internal and outsourced, external supplier, multi-country, contractor, subcontractors, anonymous sourcing, direct sourcing, indirect sourcing, and so on. There are many different concepts and many different definitions. In further articles, we will study the dimensions on which the different sourcing models are relying and what their differences and advantages are, how to choose the sourcing......
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