Supplier Management at Sun Microsystems (A), Managing the Supplier Relationship

Supplier Management at Sun Microsystems (A), Managing the Supplier Relationship

By
Charles Holloway
1996|Case No.OIT16A

Sun’s strategy is to identify 2-3 key leading edge differentiators for its products and standardize elsewhere, leading it to outsource the bulk of its manufacturing. Issues surrounding this strategy include: 1) selecting responsibilities within the purchasing function; 2) organizing and assigning responsibilities within the purchasing function; 3) developing long-term relationships with suppliers; and 4) developing management tools that appropriately motivate suppliers. In particular, the ‘Scorecard’ that Sun uses as a supplier management tool is presented.

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