A software design firm has traditionally done most of its work in-house, including support services...

Context: The firm is expanding and looking to concentrate on core competencies to increase agility and differentiate from competitors.

Core Competencies: These are the unique capabilities that give a firm a competitive advantage.

Supply Management’s Role: To support the CEO’s recommendation, supply management should focus on outsourcing non-core activities. This allows the firm to allocate more resources and focus on what they do best.

Outsourcing: By identifying non-core functions that can be outsourced, the firm can become more agile, reduce costs, and improve efficiency.

Evaluation: Conducting a spend analysis or developing better e-procurement processes are useful, but they don't directly address the CEO's strategy of focusing on core competencies. An organization-wide strategic sourcing plan is broader and less focused on core vs. non-core activities.

Conclusion: The best way for supply management to support the recommendation is by identifying and outsourcing non-core business functions.

References

Core Competency Theory by Prahalad and Hamel.

Strategic Management of Supply Chains by David Simchi-Levi.

Supply Chain Management: Strategy, Planning, and Operation by Sunil Chopra.