supply chain terms paper

Subject: Management

1: Reasons favoring single or multiple suppliers.
2: Sourcing decision; whether to make in house or buying from the suppliers.
3: Purchasing organization.

questions & answers from manager
1: How many suppliers does Sportworks use? & Prefer to use single supplier or multiple suppliers? Why?
– If it was possible for us to deal with one supplier to get all the materials what we need to make our product then that would be a better, but since only certain company make certain thing then we go with multiple suppliers but we only keep the reliable supplier to work with us.

2: Does Sportworks make their own components or materials in house or buying from the suppliers? If both tell us the reasons & the percentage?
– We generally buy our component or material as suppose to making them, and the main reason we decide to buy instead of making it is because if it more expensive to making it in the house then we usually buy the material from the suppliers.
– The reason why we buy from the suppliers is because the suppliers usually are more expert to making the component than us, and usually cheaper.
– Probably around 10% of our material we make it in the house, so the main point for it is if we cheaper to make it in the house then we would make it but if cheaper buy from the supplier then we usually don’t make it in the house.
3: Does Sportworks using centralized purchasing or decentralized purchasing? Why?
– We do centralized purchasing because to keep us simpler, and because the size of our business allow us to do that so that let the people who is in charge to keep have a better handle on how the business running.


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