It is on Multiple Sourcing Vs Single Sourcing . Presented by Shefali Srivastav, Samarth Gulati of FMG-18A, FORE School of Management

1. Multi Sourcing vs Single Sourcing Samarth Gulati91047 Shefali Srivastava 91050

2. Problems in Supply Chain Disruptions: natural disasters, strikes, terrorism attacks Uncertainty Vulnerability Complexity

3. What should be done Build a resilient supply chain Prepare the firm against disruption respond to uncertainty effectively secure the supply-chain

4. Multiple Sourcing Single Sourcing

5. HIGH SUPPLY RISK HIGH LOW LOW FINANCIAL IMPORTANCE

6. Need for Single Sourcing

7. Need for Multiple Sourcing

8. Multiple Sourcing vs Single Sourcing Multiple Suppliers PRICE INDIRECT COSTS Single Supplier PRICE INDIRECT COSTS

9. Ford Case In 1998, supply problems at Ford resulted in the temporary, three-day shutdown of the Fiesta and Puma manufacturing facilities in Cologne and Dagenham, Germany. The source of the supply problem was a computer glitch at Ford’s provider of door and trunk latches. Those three days cost Ford approximately £70 million in labour costs and the production of about 7000 vehicles.

10. Ericsson vs Nokia Philips suffered a fire in its plant of Alburque in march 2000. Philips’s site became unable to produce the computer chips that its customers, Nokia and Ericson, needed to produce mobile phone handsets. Nokia realized very early that there was a problem in the production of chips, and pressured Philips to reroute capacity. Ericsson detected the problem slowly and when it turned to Philips, it was too late as Nokia had already claimed all the production. The damages were very important for Ericsson as Philips was its only supplier: Ericsson lost $1.8B, and almost 4% of market share to Nokia.

11. Conclusion