Respond to each posts in a substantive manner, and provide recommendations. Support your position by using information from examples from current events, and/or other scholarly or credible resources. Cite references, if needed.
You are encouraged to promote a more meaningful and interactive discourse in this discussion forum. Each response should be a minimum of 150 words.
First post:
What I got from the reading was that businesses migrated away from single sources to multiple vendor sources when developing business structures on front line services and in the background of operations. I believe this is just an evolution of independent private smaller companies marketing themselves; further proving their capabilities to outperform or perform the duties of major corporations just as well in specific sectors pockets to generate demand for their services. In return, over a period of years; credible businesses were established that can undertake projects. With upcoming corporations taking a chance on outsourcing logistic functions, these new vendors had to earn the trust of stakeholder’s who assumed the risk to fund and finance the new third party vendors. Research states thatThe vendor development process is a sequence of actions that a corporation takes to discover, analyze, and choose vendorsLinks to an external site. to offer goods or services to the organization. The vendor development process aims to establish long-term, mutually beneficial relationships with vendors that can meet the company’s demands in a cost-effective and reliable manner (Bhattacherjee, 2022). During the implementation phase of the company is where the tailoring of negotiations morphed into what we see today; the realm where vendors began taking on more of the risk of the company’s operations. This included vendors working more closely with company operations, and company management customizing contracts that divides responsibilities to subject matter businesses that specialize exceptionally well over the competition.
Reference:
Bhattacherjee, S. (2022) 6 Stages of Vendor Development: Best tips to choose your true vendor, retirement. Signal X retrieved from. https://signalx.ai/blog/6-stages-of-vendor-development/
Second Post:
Companies are shifting from cost-driven outsourcing models to including service continuity and improvement in their third-party deals. As opposed to long-term outsourcing agreements with a single supplier, companies are diversifying their approaches to sourcing products and services (Emmett, 2005). The third-party supplier relationship management system (3 P.L.S.M.S.) plays a major role in lowering the cost of managing the quality of services that companies receive from third parties. With the multi-vendor approach, the management of product and service quality and relationships between companies and third parties could be costly. The management system ensures the consistency of product and service quality from vendors while achieving the cost-cutting goals of outsourcing (Dobosz, 2008). With the 3 P.L.S.M.S., it is easier for organizations to ensure due diligence and conduct risk assessment for third-party deals with multiple suppliers.
Maintaining a consistent and sustainable model for managing the relationship between a company and third-party suppliers has made it possible for corporations to outsource to multiple companies while achieving quality improvement. As competition increases and the need to cut costs become a necessity, it is necessary to ensure that organizations can easily transition from one vendor to another. The 3 P.L.S.M.S. ensures service continuity after a third-party supplier hand over operations to another company (Dobosz, 2008). Maintaining a management system for relationships with third parties ensures flexibility for companies, as they can easily change from one vendor to another. Businesses can easily change suppliers of products and services when there is a clear framework on how they can transition without compromising service delivery.
References:
Dobosz, J. (2008, May 29). Risky business, high payoffs. Forbes. https://www.forbes.com/2008/05/25/core-deals-strategy-oped-cx_jh_pb_outsourcing08_0529risk.html?sh=3de8da904c9cLinks to an external site..
Emmett, S. (2005). Excellence in warehouse management: how to minimize costs and maximize value. Germany: Wiley.
