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Effective Make/Buy
Decision-Making
Workshop Duration
Two Days
Target
Audience
- All Senior and Middle Managers in Procurement and
Supply, Marketing, 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 problems of retaining critical assets and avoiding
post-contractual switching costs.
- The importance of understanding dynamic buyer and
supplier relationships after outsourcing
Workshop
Structure
Day One: The
Make/Buy Decision: Critical Assets And Adverse Selection
Retaining Critical Assets:
A Methodology is Provided to allow Delegates to Understand
which Resources and Competencies should be Retained In-House at all Costs. An
introduction to t he Exchange Relationship between Supply and Value Chains and
the Dynamic Nature of Supply Chain Resources is Provided.
Break-out Session on Insourcing Critical Assets:
Delegates will work through Case Studies and/or their Own
Examples of Make/Buy Decision-Making to Understand which Resources and
Competencies are Critical and should be Retained In-House at all Costs.
Avoiding, Adverse Selection:
An Introduction is Provided of the Key Reasons why Adverse
Selection Decisions are Normally Made. A Sourcing Selection Methodology is
Provided to Allow Delegates to Understand the Key Issues that must be addressed.
Break-Out Session on the Avoidance of Adverse
Selection:
Delegates Map Out the Key Sources of Adverse Selection in
a Series of Case Studies and/or Use Their Own Examples.
Day Two: The
Make/Buy Decision: Unforeseen Transaction Costs And Moral Hazard
Avoiding Unforeseen Transaction Costs:
An Introduction is Provided to the Key Sources of
Unforeseen Internal and External Transaction Costs. Delegates are Provided with
a Methodology for Assessing Unforeseen Transaction Costs Prior to Outsourcing
and Contract Development.
Break-out Session on the Avoidance of Unforeseen
Transaction Costs:
Understanding Delegates Map Out the Key Sources of
Unforeseen Transaction Cost in a Series of Case Studies and/or Use Their Own
Examples.
Avoiding Moral Hazard:
An Introduction is Provided to the Problems of Incomplete
Contracting; Bounded Rationality; Information Asymmetry; Asset Specificity; and,
Post-Contractual Opportunism by Suppliers.
Break-out
Session on the Avoidance of Moral Hazard:
Delegates
Map Out the Key Sources of Moral Hazard in a Series of Case Studies or Use Their
Own Examples. |
