Supplier Management at Sun Microsystems (A): Managing the Supplier Relationship

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Case

Reference no. OIT16A

Subject category: Knowledge, Information and Communication Systems Management

Authors: Charles A Holloway (Stanford Graduate School of Business, Stanford University); David Farlow (Stanford Graduate School of Business, Stanford University); Glen Schmidt (Stanford Graduate School of Business, Stanford University); Andy A Tsay (Stanford Graduate School of Business, Stanford University)

Published by: Stanford Business School

Originally published in: 1996

Version: 9 March 1996

Length: 17 pages

Data source: Field research

Topics: Supplier relations; Computer industry; Strategy formulation; Partnership; Purchasing; Integration vertical

Share a link: https://casecent.re/p/107832

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Abstract

Sun's strategy is to identify 2-3 key leading edge differentiators for its products and standardize elsewhere, leading it to outsource the bulk of its manufacturing. Issues surrounding this strategy include: 1) selecting responsibilities within the purchasing function; 2) organizing and assigning responsibilities within the purchasing function; 3) developing long-term relationships with suppliers; and 4) developing management tools that appropriately motivate suppliers. In particular, the 'Scorecard' that Sun uses as a supplier management tool is presented.

Location:

Silicon Valley, CA

Industry:

Computer

Other setting(s):

1996