Planning of global sourcing from total acquisition cost perspective
by Henri Janhonen
International Journal of Technology Intelligence and Planning (IJTIP), Vol. 4, No. 1, 2008

Abstract: The share of companies' revenue spent on purchases has increased significantly; an average company spends over half of its earnings in procurement. Therefore, efficient management of sourcing is crucial in succeeding in the competed marketplace. The topic studied in this paper is how total acquisition costs related to alternative sources of supply should be analysed. Relying on previous theories, a framework for modelling supply-chain costs is established to address the cost effects of altering a source of supply. The established supply-chain cost model is applied to material flows of Kalmar in a specific case study to demonstrate the analysis approach.

Online publication date: Tue, 04-Mar-2008

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