Received wisdom - that many practitioners strictly follow - suggests that competitiveness in the global economy requires companies to focus on core competencies, reduce the number of suppliers and develop strong partnerships built on shared information and trust with the remaining suppliers. But interviews with leading practitioners shows that blind adherence to this three-step approach simplifies the problem and can be bad medicine. We offer a simple guide to choosing the appropriate ratio for each supplier. The important point is whether the supplier relations is aimed at reducing the cost or value-added benefits to the client, or both. The corresponding relationship can be one of the competitive intensity, collaboration and partnership, or strategic alliance. In this study, the firm with a successful outsourcing strategy began with a well-developed and strong technological forecasts. Otherwise, strategic outsourcing will be filled with many blind avenues and deeply regrets making. "Hide
on F. Ian Stuart, David M. McCutcheon Source: Business Horizons 10 pages. Publication Date: March 15, 2000. Prod. #: BH044-PDF-ENG
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