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AES Global Sourcing Initiative

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1. Consider the AES Global Sourcing Initiative from an overall perspective. How effective has the effort been to-date? Is AES applying a truly strategic approach?
2. How should the electric-meters team proceed?
a. What should be the key elements of their strategy?
b. Which suppliers hold the greatest promise for AES?
c. Should AES conduct a reverse auction with FreeMarkets?

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Solution Preview

1. From the overall Global Sourcing initiative, AES has not been a truly strategic approach. Currently, it has asked for request for information and request for quotation from five new suppliers. What is required is a globally coordinated effort, active involvement and information from sites all over the world, advanced strategic sourcing training, and increasing the knowledge base. A strategic approach would have focused on quality testing, reliability, and track record of service. The current approach is ad hoc approach and is designed to gain small ...

Solution Summary

The response provides you a structured explanation of the AES Global Sourcing Initiative . It also gives you the relevant references.