M6D1: MIXED SOURCING STRATEGY 1

M6D1: Mixed Sourcing Strategy, the Right Choice or a Disaster in the Making?

Complete the following:

What is your definition of a responsible source (of a product)? This answer should

be in your own words.

Yuwei and Thong Ngee (2015) describe a mixed sourcing strategy, where a company

utilizes both foreign and domestic sources. You have just been hired as the Procurement

Officer for a sustainable products retail chain. The company prides itself on only

purchasing goods that are sourced responsibly. Your Chief Executive Officer (CEO) has

asked you to brief the Cs (CEO, COO, CFO, CTO, etc. ) on the potential risks of utilizing

a mixed sourcing strategy as opposed to only utilizing known domestic providers. You

should discuss the three most significant risk factors (no more, no less than three). Support

your analysis with scholarly evidence.

Describe, in your own words, how Yuwei and Thong Ngee (2015) propose to handle

sourcing under uncertain conditions. This response should be limited to no more than three

sentences (your explanation should be clear and concise).

Definition of Responsible Sourcing

In my definition, I understand responsible sourcing as the aspect where companies search

and order supplies from various parts of the world with regard to their impact on various aspects.

Such issues may include environmental, social, economic, and the process of collaborating with

the parties involved to get the essential supplies. The environmental aspects entail concern with

the environmental responsibility I get the ingredients required to produce various products, their

transportation, and production of the raw materials (Nestle, 2015). Must take into account issues
M6D1: MIXED SOURCING STRATEGY 2

such as deforestation and atmospheric emissions. The socially responsible sourcing entails

involving the local communities, assisting the social development, and enhancing social

integration. On the aspect of the economy as a responsible sourcing, such factor includes

compensating the producers' a worth amount, as well as, providing subsidies for the production

yields of the raw materials.

Potential Risks of Utilizing a Mixed Sourcing Strategy as Opposed to Only Utilizing Known

Domestic Providers

The aspect of utilizing a mixed sourcing strategy may have profound impacts to the

responsible sourcing of the organization. As mixed sourcing calls for the utilization of the global

sourcing, there are certain potential threats that companies may be subjected to in the process.

The potential threats that utilization of mixed sourcing strategy induces to the company as

opposed to utilizing only known domestic providers include lack of cognizance between the

product and the company's characteristics. The existence of various uncertainties along the

delivery process from the producer to the processing company, and lack of value-addition of the

sourced products undermining the company's competitive advantage.

Firstly, the lack of cognizance between the products and the companys characteristics

revolves around the fact that mixed sourcing creates low checks and balanced supervision of the

production process of the ingredients by sourcing across the globe (Jin & Kang, 2013). On the

contrary, known domestic providers assert an opportunity where the company can maintain a

high level of collaboration to monitor the production process close by to elevate the quality and

required standards.
M6D1: MIXED SOURCING STRATEGY 3

Secondly, there is a potential of enormous risks of the existence of uncertainties in the

delivery process. Mixed sourcing, as opposed to known domestic producers, covers a large

geographical region and the extended distance between the company and the producers. This

gives room for the producer selling the raw materials to the highest paying company risking the

outsourcing lack of ingredients to run their company. As well, there is a potential risk of price

hike in global sourcing.

Lastly, the lack of value-addition of the source products by mixed sourcing as opposed to

only known the domestic producer. It's hard to maintain high production standards of the

required products across the world (Jin & Farr, 2010). The low products standards culminate into

undermining the competitive advantage of the company in the industry. The domestic producers

can be closely monitored to improve the quality of the ingredients required by the company.

How Yuwei and Thong Ngee (2015) Propose to Handle Sourcing Under Uncertain Conditions

Yuwei and Thong Ngee (2015) proposes the categorization of products according to the

main uncertainties in the supply chain. This is a strategic approach to the solving the

uncertainties existing in the process. In turn, address the uncertain facing the products from an

integrated approach where there is a smooth flow of the supply chain. Can be sustained through

enhanced collaboration between the companies and the parties involved in the supply chain of

the products.
M6D1: MIXED SOURCING STRATEGY 4

References

Jin, B., & Farr, C. A. (2010). Supplier selection criteria and perceived benefits and challenges of

global sourcing apparel firms in the United States. Family and Consumer Sciences

Research Journal, 39(1), 31-44.

Jin, B., & Kang, J. H. (2013). Antecedents and outcomes of global sourcing and information

technology in the US apparel supply chain. Journal of the Textile Institute, 104(1), 57-66.

Nestle. (2015). Responsible sourcing in Nestl. Retrieved

from https://www.youtube.com/watch?v=KoYX_-0obPI&feature=youtu.be

Yuwei, K., & Thong Ngee, G. (2015). Strategic improvement of the quality of global sourcing in

unstable environments. Current Issues of Business & Law, 10, 227-246.