Techno Systems Corporation: Benchmarking Sourcing (Abridged)
(4 pages of text)
Techno Systems, an industry leader in providing electronic kit assemblies for customized commercial applications and government, is currently undergoing a transition from a heavy government orientation to a more commercial customer base. A director of sourcing has been asked to prepare a review of the sourcing function by using benchmarking. She is considering how to effectively implement a benchmarking effort that would contribute to the sourcing review. Based upon her presentation, the upper management will determine the need for strategy development in the sourcing department. In essence, she is determining the hierarchical placement of the sourcing department for the future. This case affords the student an opportunity to examine sourcing in relation to operations strategy and to investigate benchmarking practices. It includes information compiled from benchmark studies conducted by the Center for Advanced Purchasing Studies (CAPS) and provides an insight into gated benchmarking.
This case can be used in undergraduate or graduate operations classes to highlight the use of benchmarking or in a purchasing/sourcing context (either in an academic or practitioner environment). In the latter situation, an examination of the individual sourcing performance metrics is warranted. It has been used effectively with purchasing professionals who are embarking on full benchmarking efforts or merely on their own sourcing measures.
USA, Large, 1992
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