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Strategic Sourcing Presentation

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					                                       MIM 524
                              Global Sourcing and Supply
                                Summer Term 1, 2011

Class Time: 5:30 to 10:00 PM, Tuesdays

Class Location: SBA 290

Instructor: Dawn Moore

Email: DawnMSUMoore@yahoo.com
Work Phone: 503-712-8857
Cell Phone: 503-267-7663

Office Hours: By appointment. Also available typically 30min prior to class, at dinner
breaks and immediately following class.

Course Objectives & Description: This class is the study of sourcing in a global
environment. Topics to be reviewed include; locating and qualifying international
suppliers, the differences and similarities of global and domestic sourcing, and
developing contracts and long term relationships with selected suppliers. Factors such as
the payment process, letters of credit, metrics for supplier measurement, and risk
management will be discussed. A key focus will be the development of strategies for
products, commodities, and outsourcing.

Since this is a course in Global Sourcing, aspects of globalization that ultimately affect
the supply chain will be reviewed. The pervasiveness and dialectic nature of the Global
Production Network within a Multi-National Corporation will be discussed. Finally, we
will review current events and how they might positively affect or disrupt global supply.

Learning Objectives & Themes in the Course::

      To understand how global sourcing fits into an overall supply chain competitive
       & comparative advantage & how world events apply or alter supply strategies.

      To develop the concept of supply chain as a system and its importance.

      To appreciate the global nature of supply markets and their complexities, benefits,
       risks, and tradeoffs versus domestic or protected markets.

      To develop an understanding of the financial and operational benefits as well as
       risks of knowledge standardization. At the end of the course, you will understand
       terminology such as: Continuity of Supply & Disaster Recovery Planning, Force
       Majeure, Purchase price variance, JIT, Contracts, Intellectual Property Protection,
       ODM /OEM/CM, Make vs. Buy, Supplier vs. Vendor, Single and Duel Sourcing,
       and Total Cost.
      To understand strategic supply planning and to learn how to construct product and
       supplier strategies.

      To understand how outsourcing, offshoring, and knowledge transfers affect
       sourcing decisions.

Required Texts:

Sollish, F. & Semanik J. (2011). Strategic Global Sourcing Best Practices John Wiley &
    Sons Inc.


Required Readings:

Duda, James, Mackwani, Munoz, Volk, Lee (2007). Starbucks Corporation - Building a
   Sustainable Supply Chain. Stanford Graduate School of Business Case GS-54.
   Retrieved April 2011 from:

Permissiions@hbsp.harvard.edu

Gray, J., Karunakaran, S., & Leibein, M. (2008). Scotts Miracle Gro: The spreader
   sourcing decision. Retrieved March 26, 2009 from:
   http://harvardbusinessonline.hbsp.harvard.edu/b02/en/search/searchResults.jhtmlCase
   number 908M78

Bartlett, Christopher & Dessain, Vincent & Sjoman, Anders (2006) IKEA’s Global
   Sourcing Challenge: Indian Rugs & Child Labor. Harvard Business School
   Publishing, Nov14, 2006 9-906-414

Kropf, W. C. & Russell, P. L. (N.D.). Hewlett-Packard's Packaging Supplier Evaluation
   Process and Criteria. Retrieved May 24, 2009 from:
   http://www.hp.com/packaging/Procurement/paper.doc

Monczka, R. M., & Trent, R. J. (2005). Achieving excellence in global sourcing. Sloan
  Management Review 47(1), 24-32.

Magretta, Joan (1998) The Power of Virtual Integration: An Interview with Dell
  Computer’s Michael Dell. Harvard’s Business Review, 72-84.


References:

George, M. L. (2002). Lean six sigma. New York: McGraw Hill. ISBN 0-07-138521-5

Magretta, J. (1998). The power of virtual integration: An interview with Dell Computer’s
  Michael Dell. Harvard Business Review March-April (1998), 72-84.
Monczka, R. M., & Trent, R. J. (2003). Understanding integrated global sourcing.
  International Journal of Physical Distribution & Logistics Management 33(7), 607-
  629.

http://elc.polyu.edu.hk/CILL/errordetector.htm

http://owl.english.purdue.edu/owl/resource/560/01/

http://www.law.cornell.edu/ucc/ucc.table.html

Course requirements:
Each student will be expected to actively participate in class lectures and case analysis
discussions. There will be one case study & presentation, a written commodity study and
team sourcing strategy presentation, and two individual written abstracts. In addition,
students are expected to come to class prepared to discuss current events and how they
might impact global sourcing strategies. Note that this course emphasizes team
participation and is designed to help students prepare for the exit project process.

Grading: Scott Miracle-Gro Case: 20%; Case Presentation 10%, IKEA Abstract 5%
Starbucks Abstract 5% Commodity Study 25%; Final: Strategic Sourcing Strategy
Presentation 25% and Class Participation 10%.

       Scott Miracle-Gro Case Study will be graded upon:
                                                                                    %Points

       A.   Analyzing the case effectively                                         5
       B.   Identifying and evaluating alternative solutions                       5
       C.   Linking the case to strategic sourcing issues                          5
       D.   Organizing of the case and effective teamwork                          5
                                                                      Total 20% points
       E. Groups will present the same case study but may represent different
          arguments during class. Plan on providing a copy of your write up (3-5 pages /
          spreadsheets) and copies of your slides. The Case study presentations will be
          July 12th. Please submit your write up and slides at the beginning of class on
          July 12th. We will use a portion of class on July 5th for the group prep. I will
          be available for last minute consulting.
       F. Case/reading packet (MIM 524) available at Clean Copy (1704 SW Broadway
          Avenue, 503.294.3999)
       G. Group assignments are established in the first class meeting, the case study
          written assignment includes both financial & risk/benefit for off shoring &
          outsourcing. Presentations & written assignments are combined for grades
          based on A-D above

       IKEA & Starbuck Abstracts will be a 2-3 page summary of case cited in required
       reading above. This will be an individual submittal with recommendations based
       on the facts provided in the case as well as critical thinking in terms of the overall
       challenge as it relates to global sourcing in general. Do not summarize the case –
       give me your thoughts on it’s implications, issues and where you see the issue
       playing out in other companies or industries today. This is not a book report.

       The Commodity Study: See Handout for structure. Each team will select a
       commodity by the second class. The deliverable is a report as you would submit
       to a client or executive team on your collective study.

       A. APA Format
       B. 10 pages in length, excluding spreadsheets, summary, and references.
       C. Structure: executive summary, scope, commodity overview, competitive &
          market analysis, and key findings / observations.
       D. Grading % on the study will be as follows:
          5 grammar, APA, structure & proper flow of topics
          10 conceptual framework and applicability to global sourcing
          10 Content and expression of the data and how they relate to your research.
       Total 25% points

       The Final: Commodity Study Team Presentation - will be a group presentation of
       your global sourcing strategy as it relates to your assigned commodity study.
       Please use power point and limit your talk to 15 to 20 minutes. Grading will be
       based upon the following:
       5% presentation skills
       20% content and teamwork – Content should reference aspects of global sourcing
       introduced throughout the class. (All members should present or reveal assigned
       participation)
       Total 25% points
           Do not go over allotted time, this is part of your grade

Class participation grade will be based on class discussion during lectures, current events
and Peer reviews during the final presentation. This will be entirely up to my discretion
but consistent participation throughout the entire course is required.

Class time structure: This will vary tremendously pending speakers and subject matter:
First 90 minutes – Interactive lecture (short break)
Break - Dinner
Third Hour – Lecture, case work, guest speakers (short break)
Fourth Hour - Review of current events, conclusions, and intro of materials for next class

The reading from Sollish and Semanik is intended to augment the lectures and case work.
The commodity study and final team presentation will undoubtedly have content from the
text; however this is not a stand and deliver from the text course. The casework to be
discussed in teams may be reference the text. In addition, this is a good source for other
papers regarding your book abstract and final presentation.

Pre-Course Assignments:
       A. See readings list from Sollish and Semanik; Monczka & Trent (2005), please
          be prepared to discuss prior to the initial class
       B. Become familiar with the first casework study Scott’s Spreader Case for
          initial discussions with your team.
       C. Take a recent event that might affect a supply chain process, bring to class
          ready to discuss.


Plagiarism of any kind – in term papers or examinations – or any other violation of
academic honesty will be grounds for failure of this course.
The Student Conduct Code, which applies to all students, prohibits all forms of academic
cheating, fraud, and dishonesty. These acts include, but are not limited to, plagiarism,
buying and selling of course assignments and research papers, performing academic
assignments (including cases and discussions) for other persons, unauthorized disclosure
and receipt of academic information, and other practices commonly understood to
academically dishonor. The code of conduct also describes standards of behavior for all
student members of the campus community. Violation of the SCC may lead to
disciplinary action. Students may obtain copies of the Student Conduct Code by
contacting the campus judicial officer at (503) 725-4422, or by visiting her office in room
433 Smith Memorial Center
                              MIM 524
                     Global Sourcing and Supply
                       Summer Term 1, 2011
                           Course Outline


Date                        Topic                     Reading/Assignments
                                                   Complete PRIOR to class

June 21st     Introduction to the course                 S & S Chap. 1 & 12;
Class One     Careers in Supply and Logistics            M & T (2005)
              Achieving excellence in Global Sourcing    Scott’s Case
              Review Scott Case – Position/Team
              Teams and Commodities Sign Up
              Class Exercises (2)

June 28th     Cultural Issues in Supply Management       S & S Chapter 4, 5
Class Two      Review Scott’s Case – Class               Scott’s Case
              IKEA Abstract Due                           IKEA Case
              IKEA In Class Discussion
              Guest Speaker – Morgan Hartnell Intel Corp.

July 5th      Organizational Structures                  S & S Chapter 2 & 3
Class Three   Strategic Planning                         Scott’s Case
              Role of Logistics                          Magretta Paper
              Dell Discussion – Magretta
              Team Prep for Case

July 12th     Sourcing Strategies, Supplier Selection    S & S Chapter 6 & 7
Class Four    Specifications                             Scott’s case
              Price and Cost Analysis
              Scott’s Case team Presentations
              Case Class Discussion/Debrief


July 19th     Mechanics of International Trade           S & S Chapter 11
Class Five    Contract Formation, Contract Types
              Contract Terms, INCO Terms
              Contract Term Negotiations
July 26th     Managing Supplier Performance            S & S Chapter 9 & 10
Class Six     Managing Supplier Relationships          Kropf, W. C. & Russell, P. L
              TQRDCEB – Discussion                     Starbucks Case
              e-Procurement
              Starbucks Abstract Due
              Guest Speaker – Tom Alessi – America/Pacific Rim
              Procurement Manager – Mentor Graphics

Aug 2nd       Negotiation Strategies & Pricing Methods    Starbucks Case.
Class Seven   Readings and current events, sustainability S & S Chapter 8
              Starbucks Class Discussion
              Commodity Study Due at Beginning of Class

Aug 9th       Global Sourcing Strategy Presentations
Class Eight   Peer Reviews Due       .
              Wrap Up and Final Closing Comments

				
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