question archive Examine and discuss the tradeoffs in sourcing and sales strategies (i
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Examine and discuss the tradeoffs in sourcing and sales strategies (i.e., upstream and downstream supply chain strategies) by considering them as components of an integral end-to-end supply chain strategy.
Trade-offs In Sourcing and Sales Strategies
Globalization, as well as e-commerce forces, have modified the supply chain over the previous 2 decades. Globalization has offered companies an alternative to their sourcing in addition to operations methods to either manufacture near their markets or look for reduced prices from withdrawn sources (Leeman, 2020). The internet development established resilient new sales mediums, where enterprises might sell products directly to the customers online rather than by traditional shops. Nonetheless, the organization around the globe still pursue sourcing as well as sales models to promote their business.
Companies can select distribution and supply chain styles based on product demand predictability. Such interventions utilize cost-effective product distribution with predictable requirements and responsive distribution mediums for the business with functional requirements (Soh, 2020). The general guidelines facilitate certain sourcing as well as sales methods generation. A distant source promotes decreased out-of-pocket expenditures, although the strategy might suffer from increased forecast mistakes and might be inadequately responsive because of the prolonged lead period compared to the nearshore source.
Based on sales practice, the online model has a decreased expense compared to the functional channel since it has insufficient physical materials and centralizes inventory in a single location. Nevertheless, the approach comes at the pre-purchase commodity customer expense absence (Phadnis & Fine, 2017). The strategy might contribute to decreased online channel prices for novel goods, although for popular commodities. Both the supply and sale models have benefits; however, they also present challenges.
Globalization has transformed business operations in the world. The modification has enhanced several developments in supply and sourcing channels. Additionally, enterprises consider sourcing their materials onshore and offshore. The approaches present advantages and limitations.