the presentation is about the six sourcing strategy in supply chain it has included all type of sourcing strategies that are used in supply chain. for example, few supplier, many supplier, joint venture, vertical integration, virtual companies and kereitsu network

1. SIX SOURCING STRATEGY
IN SUPPLY CHAIN
Prepared by:
Rahat Himmat ALi

2. SIX SOURCING
1. Few supplier
2. Many supplier
3. Vertical integration
4. Joint venture
5. Keiretsu network
6. Virtual companies

3. FEW SUPPLIER
Long term relationship with few supplier
Cost advantage
Improve economy of scale
Encourage supplier to provide technical services and expertise
Design innovation

4. MANY SUPPLIER
Usually going to low bidder rate
Short term relationships with the many supplier
Low Riskiness
Used for mostly commodity product
Purchasing is typically based on price

5. VERTICAL INTEGRATION
Developing the ability to provide goods and services previously
purchased or actually buying from a supplier. Starting from raw
material till the end product all process are done by the firm it self.
Cost reduction
Higher quality
Timely delivery
inventory reduction

6. JOINT VENTURES
Formal collaboration between the firm to reduce the cost and
enhance product power
Enhances technical skills
Secure supply
Reduce cost
Cooperation without diluting brand or conceding competitive
advantage

7. VIRTUAL COMPANIES
Rely on variety of supplier relationship to provide services ion
demand and also known as hollow corporation or network
Fluid organizational boundaries that allow the creation of unique
enterprises to meet changing market demands
Exceptionally:
lean performance
low capital investment
Flexibility
speed

8. KEIRETSU NETWORK
Describe supplier as a partner who become part of the company
coalition
A middle ground between few suppliers and vertical integration
Members expect long-term relationships and provide technical
expertise and stable deliveries
May extend through several levels of the supply chai