1. International Purchasing to Integrated Global Sourcing
Global Sourcing
Global Sourcing Strategies
Level Level Level Level Level
International Integrated
Strategies
Domestic International
Across
Purchasing as Integrated
Purchasing Purchasing Only
Part of Sourcing Across Worldwide
1 2 3 4 5
as Needed
Only Strategy Worldwide Locations and
Locations Functional
Groups
Confidential Retailer
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2. Global Sourcing Best Practices
Executive • CEO formalizes commitment to global sourcing strategy to company.
• Cross functional steering committee established.
Commitment to • SVP has the responsibility to translate a global vision into reality.
• Sourcing opportunities are prioritized. Metrics assigned.
Global Sourcing • Presentations made to Executive Committee.
Well-Defined • Define process with established goals, milestone dates, role clarity.
• Gain input from all cross functional partners.
Process, Timing and • Leverage current process and resources.
Role Clarity • Understand “Lessons Learned” from current climate.
• Access to key cross functional partners, budgets, information, time and help from
outside resources as needed.
Availability of Needed • Enlisting help of functional managers to step up when leadership team not available.
Resources • Data requirements include existing contracts, supplier performance and capabilities
matrix, projected demand by commodity/location, capabilities matrix of potential
suppliers, internal customer requirements.
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3. Global Sourcing Best Practices
Integration Through • Use of Data Warehouse to access required data and information on
a real-time basis.
Information • A companywide intranet provides access to global sourcing support
Technology documents and progress updates.
•Cross functional team is responsible for the detailed analysis of global opportunities for
Organizational their required products.
•Establish international sourcing offices to support global initiatives and purchasing.
Design •International office to help with operational issues that arise after supplier selection.
•Establish internal team structure, role clarity and location.
•Project teams meet regularly to coordinate efforts.
Definitive •Frequent strategy review and coordination sessions.
•Regularity in reporting to Senior Executives.
Communication •Project updates posted on company intranet.
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4. Global Sourcing Best Practices
Metrics and • Agreement on methods of validating savings from global initiatives.
• Executives meet regularly o review savings from existing
Methods for agreements/suppliers and expected savings from in-process
Measuring Savings activities.
Needed • Must look beyond unit cost.
• Develop global performance measures.
Enhancements for • Establish compatible information systems across the value chain.
Success • Worldwide consistency in supplier evaluation and development.
Translate Global • Mutually agreed upon metrics and sourcing priorities.
• Establish a multi year, multi country strategy.
Vision into Global • Cross functional commitment and involvement.
Reality • Unbiased financial evaluation of benefits.
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