Subject category:
Production and Operations Management
Published in:
2013
Length: 16 pages
Data source: Field research
Abstract
Access and control over essential resources must be at the heart of corporate strategy. Today, those essential resources are not limited to the perimeter of the firm. This case was developed to introduce supplier management as it relates to corporate objectives. It can be used to introduce management topics like the strategic sourcing process to manage a spend category and the challenges associated with changing the culture and habits of a firm but also strategic topics like the resource based view of the firm, and the resource dependency. The company at the centre of the case needs rare molecules to produce innovative vaccines in a biotech environment. The access to those chemicals is managed by the R&D department working with distributors who enjoy a significant power over the selection process and have access to strategic information. As the company experiences financial pressures, a new procurement head is hired to revamp supplier management practices.
About
Abstract
Access and control over essential resources must be at the heart of corporate strategy. Today, those essential resources are not limited to the perimeter of the firm. This case was developed to introduce supplier management as it relates to corporate objectives. It can be used to introduce management topics like the strategic sourcing process to manage a spend category and the challenges associated with changing the culture and habits of a firm but also strategic topics like the resource based view of the firm, and the resource dependency. The company at the centre of the case needs rare molecules to produce innovative vaccines in a biotech environment. The access to those chemicals is managed by the R&D department working with distributors who enjoy a significant power over the selection process and have access to strategic information. As the company experiences financial pressures, a new procurement head is hired to revamp supplier management practices.