Procurement and Outsourcing

Description

Every firm at some point is faced with a fundamental question: What resources and which activities in the value chain should be supplied in-house? In short, it is the well-known dilemma of "make or buy." This note presents managers with a summary of the keys and opportunities of outsourcing and procurement in order to help them transform these activities into sources of competitive advantage for their companies.

Learning Objective

This note describes the key elements of outsourcing and procurement. It is meant to complement cases whose primary focus is on this area.

Keywords

Costs Outsourcing Procurement Risk Suppliers