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.

Supplements the (A) case.