Retail management ppt

1. International
sourcing
By Shaheen Akthar

2. Introduction
 International sourcing is the process of strategically procuring
goods, services, or raw materials from suppliers outside of
the company's home country.
 As businesses continue to expand globally, international
sourcing plays a crucial role in enabling access to new
markets, optimizing costs, and leveraging specialized
resources.
 It involves a detailed evaluation of potential suppliers,
understanding international trade regulations, and mitigating
various global risks.

3. Benefits of International Sourcing
Cost Optimization
International sourcing
provides opportunities to
obtain goods and services at
lower costs, leveraging
varying wage structures and
production efficiencies in
different countries.
Diverse Product Range
It enables access to a wider
range of products and
services, allowing businesses
to offer diverse and unique
offerings to their customers.
Market Expansion
By sourcing internationally,
companies can enter new
markets and expand their
customer base, driving
business growth and
increasing revenue streams.

4. Challenges of International Sourcing
1 Supply Chain Complexity
Dealing with suppliers from different
countries can lead to complex supply chain
management, including shipping, logistics,
and customs processes.
2 Cultural Differences
Understanding and navigating cultural
nuances and business practices in foreign
markets can present significant challenges.
3 Quality Assurance
Ensuring consistent quality standards
across international suppliers can be
challenging due to varying manufacturing
processes.
4 Regulatory Compliance
Navigating diverse international regulations
and trade policies requires meticulous
attention to compliance and legal
obligations.

5. Factors to Consider When Sourcing
Internationally
1 Supplier Capability Assessment
Thoroughly evaluate the capabilities, capacity, and reputation of potential suppliers to
ensure they align with the company's quality and production standards.
2 Risk Identification
Identify and assess potential risks associated with international sourcing, including
geopolitical instability, currency fluctuations, and supply chain vulnerabilities.
3 Logistics Planning
Develop a robust logistics strategy encompassing transportation, warehousing, and
inventory management to streamline the movement of goods across borders.

6. Best Practices for Successful
International Sourcing
Establish Clear Communication
Ensure clear and effective
communication with international
suppliers to foster strong relationships
and mitigate misunderstandings.
Implement Quality Control
Measures
Establish stringent quality control
processes to maintain consistent
product quality and meet global
standards and regulations.
Continuous Assessment
Regularly assess and optimize the international sourcing strategy to adapt to evolving
market dynamics and supplier capabilities.

7. Case Study on IKEA International
Sourcing
o Using the interaction approach as a theoretical lens, the study investigates
how supply network interactions affect the global sourcing process.
o How supply network interactions affect the global sourcing process is the
research question.
o IKEA is a Swedish furniture retailer that is especially pertinent to study as a
case study because of its distinctiveness, relevance, and global presence.
o The study analyzes the body of research on global sourcing, highlighting
key ideas and looking at current models.
o By concentrating on the activities of the Industrial Marketing and
Purchasing Group (IMP), it links the literature on global sourcing with the
well-established interaction and network perspective on the
internationalization process.
o The goal of the study is to advance knowledge of global sourcing by utilizing
the interaction approach as a theoretical framework and contrasting it with
current global .

8. Risks and Mitigation Strategies in
International Sourcing
Geopolitical Instability Implement diversified sourcing strategies
across stable regions to mitigate the impact of
geopolitical disruptions.
Currency Fluctuations Utilize financial instruments and hedging
strategies to manage the risks associated with
fluctuating exchange rates.
Supplier Reliability Establish alternative sourcing partnerships to
mitigate the impact of potential supplier
disruptions.

9. Conclusion and Key Takeaways
1 Strategic Insights
International sourcing requires
strategic planning and continuous
evaluation to maximize its benefits
and mitigate risks effectively.
2 Global Collaboration
Successful international sourcing
fosters global collaboration, enabling
businesses to access diverse
resources and expertise.
3 Adaptability and Resilience
Adopting an adaptable and resilient approach is crucial when navigating the
complexities of international sourcing in an ever-evolving global landscape.

10. Thank you