SUPPLIER SELECTION AND OUTSOURCING STRATEGIES IN SUPPLY CHAIN MANAGEMENT

The global purchasing in Supply Chain Management (SCM) has become more risky, visible and productive position within many organizations. As companies implement just-in-time and operations improvement strategies, the importance of developing and managing the suppliers emerges as critical outsourcing strategies in SCM. In addition, competitive business processes and shorter product life cycles have caused executive management to recognize the significant leverage potential that exists within the purchasing organization on the company’s cash flow and profitability position. The objective of outsourcing strategies is to implement procurement and vendor operating policies that streamline material and/or service flows, reduce manufacturer and supplier costs, improve quality and customer service performances, and create long-term buyer/seller partnerships.