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The Peril of One: Architecting a Sourcing Strategy at Edwards Paper Co.

Mark Lewis, Scott Hayward, Ryan Baxter, Vijay Kasi
January 1, 2015
SKU:
BUS-004241
Region: 
North America
Topic: 
Strategy & General Management, Operations
Length: 
10 pages
Keywords: 
Strategic Sourcing, procurement, supply chain management, supplier, management
Student Price: 
$4.00

This decision case focuses on a consumer products company, Edwards Paper Company (EdCo), as it redesigns its supply chain for poly-wrap. In response to environmental and corporate changes, EdCo sought greater efficiencies by reducing the number of poly-wrap suppliers from 10 to 1. The case offers students the information used by the consumer products company to reach its decision to move to a single-source strategy. The case provides an opportunity for students to grapple with the benefits and risks of single sourcing both in the short- and long-term. The case emphasizes the need for a dynamic alignment with strategy regardless of metrics developed and utilized. Students should see how EdCo’s change from a commercial, low-cost provider led them to a cost-cutting strategy which aligns well with an entrenched, single-source supplier also focused on cost cutting. However, as EdCo’s strategy evolves and as innovations in poly-wrap technology begin to emerge, prior approaches may require adjusting.