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Variations: General Contractor Model Overview
Procurement Strategy: One Master Contractor, Many Subcontractors. Conversely to the multi-sourcing strategy, in the “general contractor” model, the enterprise customer might hire one contractor to supervise other contractors. Typically, this procurement strategy becomes an option when the number of suppliers and the complexity of managing them becomes suddenly overbearing.
Maturity Issues. A “general contractor” role might also be useful in different scenarios relating to its supply chain:
Control. In either event, the enterprise customer gives up some control, since it cannot deal directly with the individual “sub-contractors” or “supervised contractors” without endangering its claim to hold the general contractor accountable under the master services agreement.
Further Reading:
Service Aggregation
Teaming by Bidding
Return to Sourcing Models
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