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SCMMS2 (Subject) / Outsourcing (Lesson)

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• What are the phases of the product life cycle? Phase 1 : Relationship, New product developmet Phase 2 : Coordination, ramp-up Phase 3 : Efficiency, Continuous improvement Phase 4 : Minimize obscolescence, Ramp Down
• Describe the sourcing decisions and implementation Business activity                    Top management  attention                                       high                                              Low Perceived as core       Hopefully no longer-term            Relative risk to competence                problems                                     underinvest   No longer seen            Management of Business      Hoping for"Miracle as core competence    Systen and Industry Struct.     escape" through                                                                                           Outsourcing
• Why are outsourcing decisions complicated? There is a gray area where outsourcing decisions are difficult and require much time Partners strategies may not be aligned with the own objectives Tactical vs strategic decision making results in complex and fragmented supply chains Dependency on the competencies, processes and infrastructures of others

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