Week 6 Discussion – Sourcing, Logistics, and Facility Location

Post a total of 3 substantive responses over 2 separate days for full participation. This includes your initial post and 2 replies to other students.

Due Today

Choose one or several of questions below and respond to the following in a minimum of 175 words:

  • If you were starting a new software development company and could locate it anywhere in the world, which place would you choose?
  • Provide an explanation of the variables you would consider in selecting the country and justify your rationale.
  • What is the meaning of logistics?
  • Why is it important for firms to focus on global procurement and sourcing?
  • How should firms go about making the decision whether or not to outsource?
  • Describe how outsourcing works. Why would a firm want to outsource?

Due Monday

Reply to at least 2 of your classmates in 100 word count. Be constructive and professional

BY CHANDRA How do firms go about planning and analyzing their logistics capabilities?

“Logistics is the efficient flow and storage of products from their point of origin to the point of consumption. Operation planning, on the other hand, is the strategy employed by an organization that affects all aspects of production. These strategies range from workforce activities to product delivery. A small business requires effective logistics and operation planning to produce products and deliver those products to the end user.” (Bass, 2019) Firms devise a plan to define, measure and analyze their logistical operations to include a product or service from its inception to its conclusion. That plan includes cost, efficiencies, resources, determining metrics, monitoring metrics and analyzing performance of those metrics. The plan can be as simple or complicated based on the business needs. It is important to understand the vision and mission of the firm so that it is a part of defining, measuring and analyzing performance. Firms are interested in the bottom line so cost becomes a fact therefore we always want to ensure cost efficiencies in our planning of operational logistics.

Logistics & Operations Planning by Brian Bass. Retrieved: July 24, 2019.



Why is global procurement and sourcing important for businesses?

Strategic sourcing skills play a major and important part in the cost structure and competitiveness of small businesses as well as large businesses. These particular skills will involve analyzing high-volume purchases and developing long-term partnerships with a select group of suppliers that are capable of providing quality products and services at low costs. High-volume purchases are the best candidates for strategic sourcing because they are likely to have the greatest impact on lowering cost structure. Strategic sourcing benefits both of the buyers and the suppliers, it benefits the buyers because they can negotiate lower unit prices for high-volume purchases, thus reducing costs of the goods sold and maintaining the ability to price their products more competitively. It benefits the suppliers because they are able to sell a significant portion of their output, which makes planning easier and gives management long-term cashflow visibility. Companies can also use strategic sourcing to procure services. For example a start up technology company could outsource its non-core activities, such as payroll processing, which would allow management to focus on core activities , such as product development and marketing.

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