What is the purpose of “spend analysis” in the strategic sourcing process? Provide two examples of how spend analysis might lead to cost savings. 

The dollar’s value has weakened in the pandemic. However, many fund managers and industry observers still think that the dollar is too strong and that its value should be even lower. Based on what you have learned in this class, explain the potential impacts of a weaker dollar on a firm’s supply chain decisions. Specifically, try to discuss: (1) the impact on the firm’s sourcing decisions (if any); (2) the impact on the firm’s market demand (if any).

P-cards can be used to increase efficiency when sourcing routine items

Reflect on the guest lecture by Andrew McBride. What was your biggest take-away?

In the Metalcraft Scorecard case, what are the key dimensions of supplier performance that are tracked in the scorecard? (more than one may apply)

As illustrated in the Scotts Miracle-Gro case, a sourcing decision must consider strategic as well as financial impacts 

A benefit of a multiple sourcing strategy is (more than one may apply)

What is the significance of cost modelling? Please describe TWO different ways in which a firm may use the results from cost modelling to support its sourcing strategy. 

What is a common tool for understanding the top spend parts/suppliers in spend analysis?

Above is a one-way data table for the TCO comparison between buying a Tesla and buying a Chevy. The first row indicates different assumptions for how many miles the owner will drive per year. The second row calculates the TCO for Tesla minus the TCO for Chevy. What does this data table tell us? (more than one may apply)