Logistics

Rich McCoy

LOGS 6650

Purchasing and Materials Management

March 21, 2016

Synthesis 2:

Throughout the reading of Strategic Sourcing in a New Economy I found myself reminiscing of previous business transactions, in which one side had the power and used that power to obtain a better deal. My preference was to be on side having all the leverage, secure a better deal, and declaring victory. Thanks to the shared knowledge of Keith, Vitasek, Manrodt, and Kling I now realize the short and long term disadvantages of treating procurement as if transactions were a sporting event where this has to be a winner and loser. As our readings discussed “Seven Sourcing Business Models”, “Getting to We in 5 Steps”, “The Four Cornerstones Framework”, “The Five Dimensions of Trust According to CaT” all of the models and performance evaluations are useless if there is not a level of trust and an ongoing relationship between the buyer and the supplier.

In reading articles online I found an article related to “Trust” authored by Adrian Gonzalez discusses Sports Authority’s newly filed bankruptcy and the companies plans to sell consigned goods for the sole purpose of paying creditors with complete disregard to the supplier. As there is an ongoing court battle on who is the “owner” of the goods, the issue here is the future level trust between suppliers and Sports Authority. Mentioned on page 334 is the phrase, “Do What It Takes to Not Lose Trust”. Relating this to the Sports Authority to give its suppliers the finger (Adrian’s choice of words), it would seem to seal the fate of the Sports Authority as a company. As the company is now trying to dissect a consignment contract to find a legal way to steal from its suppliers. Even if the company is able to survive bankruptcy process, what sporting equipment is going to be will to ever have a business relationship with the company whom attempted to steal/ rob money from its supplier.

As chapter 12 discussed Getting to We, I...