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Effective Insourcing and Outsourcing Management

Workshop Duration

Two Days

Target Audience

  • All Senior and Middle Managers in Procurement and Supply, Production, R&D, and Finance Functions and Divisions.
  • High-flying Junior Managers and New Entrants

Deliverables

An understanding of:

  • The basic principles of make/buy decision-making
  • The importance of understanding dynamic buyer and supplier relationships after outsourcing
  • How to improve the performance measurement and control of material, financial and information flows after outsourcing

Workshop Structure

Day One: The Make/Buy Decision

Retaining Critical Assets:
The Exchange Relationship between Supply and Value Chains and the Dynamic Nature of Supply Chain Resources

Avoiding Adverse Selection:
Time and Resource Constraints; Incomplete Information; Contestation; Information Transparency and Supply Stability

Avoiding Unforeseen Transaction Costs:
Creating Internal and External Focus on the Costs of Selection, Storage and Usage

Avoiding Moral Hazards:
Incomplete Contracting; Bounded Rationality; Information Asymmetry: Asset Specificity; and, Post-Contractual Opportunism

Day Two: Appropriateness In Managing Outsourced Supply Relationships

Flow Management in Supply and Value Chains:
Recognising the Three Types of Flow in Outsourcing Relationships--Material, Finance and Information

Performance Measurement and Control for Materials Flow:
Understanding the Customer Value Proposition and the Power Barriers in the Supply Chain Network of Buyer/Supplier Relationships.

Performance Measurement and Control for Financial Flow:
Understanding the Transparency of the Financial Relationship Between Quality and Cost in the Supply Chain

Performance Measurement and Control in Information Flow:
Understanding the Points of Information Asymmetry in the Supply Chain and the Impact of New Internet Technology on Existing Power Structures

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