international sourcing
•
6 likes•5,658 views
The document discusses international procurement strategies and global sourcing strategies. It defines strategic purchasing as coordinating procurement requirements across business units to acquire goods and services in a way that supports business needs. A global sourcing strategy aims to reduce costs, access new technologies, establish alternative suppliers to reduce risk, and take advantage of superior quality from supplier investments. Developing an effective global sourcing strategy requires determining objectives, quality standards, quantities, suppliers, prices, and managing various risks and challenges of operating across different countries.
Report
Share
Report
Share
Download to read offline
Recommended
international sourcing
This document discusses fundamentals of international purchasing and procurement strategy. It defines international purchasing as commercial transactions between buyers and suppliers in different countries. The goals are to meet manufacturing needs, ensure reliable supply sources, and access optimal global sources regardless of location. Drivers of international purchasing include technological advances, declining communication/transportation costs, and economic transformation in emerging markets. Challenges include lack of cross-cultural skills, tariffs, long lead times, and legal/logistical issues. Success requires centralized decision making, decentralized operations, communication, information sharing, critical resources, and sourcing/contracting systems. Future trends include seeking globally capable suppliers and cost reduction through emerging low-cost markets.
Supply Chain Performance
This document discusses improving supply chain performance by linking it to the balanced scorecard. It outlines current supply chain measures and perspectives in the balanced scorecard. It then proposes linking the two by identifying performance measures that align the internal, financial, innovation/learning, and customer perspectives of the balanced scorecard with goals like unit cost reduction, time reduction, waste reduction, and flexible response in the supply chain. Aligning key performance indicators across these perspectives can help optimize supply chain performance.
SUPPLY CHAIN STRATEGIES
(i) Cycle View (ii) Push & Pull View of the Supply Chain, Supply Chain Responsiveness. Strategic Fit between Business Strategy and Supply Chain Strategy, Achievement of Strategic Fit through different steps, Obstacles to achieving Strategic Fit.
Global supply chain management
Global supply chain management involves coordinating activities across countries. A global supply chain connects organizations worldwide to source materials and produce goods for customers. Managing such a complex network introduces challenges like long distances, currency fluctuations, and differing business environments. However, companies also benefit from expanded markets, lower costs, and competitive advantages. To operate efficiently, firms must integrate worldwide operations and have the agility to respond to various global factors. For example, a large computer company redesigned its supply chain from 33 plants across many countries to 12 plants within 3 regional zones, reducing costs and improving profits.
Supply chain management
This document provides a summary of key concepts in supply chain management. It discusses supply chains, supply chain management, value chain management, operations management, logistics management, lean supply chains, agile supply chains, and the objectives and decision phases of supply chains. It also covers integrated supply chain management, barriers to supply chain management implementation, attributes affecting implementation like technology and communication, and reasons for many versus few suppliers in a supply chain.
Network design
The document discusses factors that influence distribution network design for supply chains. It describes how distribution affects costs and customer experience. Distribution network design must balance customer needs like response time and product availability with supply chain costs like inventory and transportation. The document outlines different distribution network design options and provides examples of how companies implement various designs. It also discusses factors like strategic objectives, technology, infrastructure, competition and costs that influence decisions around facility roles, locations, capacity and market allocation.
logistics system analysis and design
The document discusses logistics system analysis and design. It defines a logistics system as comprising all integrated processes related to logistics, including inventory flow, information flow, physical distribution, manufacturing support, and procurement between customers and suppliers. It states that logistics system analysis involves collecting data, understanding processes, identifying problems, and recommending improvements. It also notes that logistics system design is an important step that comes after analysis, where a new system is designed based on requirements and analysis of the existing system.
An introduction to supply chain management and role of transportataion
This presentation provides a brief introduction about “supply chain management” and especially, the role of transportation in the smooth operation of “modern” supply chains is discussed.
Recommended
international sourcing
This document discusses fundamentals of international purchasing and procurement strategy. It defines international purchasing as commercial transactions between buyers and suppliers in different countries. The goals are to meet manufacturing needs, ensure reliable supply sources, and access optimal global sources regardless of location. Drivers of international purchasing include technological advances, declining communication/transportation costs, and economic transformation in emerging markets. Challenges include lack of cross-cultural skills, tariffs, long lead times, and legal/logistical issues. Success requires centralized decision making, decentralized operations, communication, information sharing, critical resources, and sourcing/contracting systems. Future trends include seeking globally capable suppliers and cost reduction through emerging low-cost markets.
Supply Chain Performance
This document discusses improving supply chain performance by linking it to the balanced scorecard. It outlines current supply chain measures and perspectives in the balanced scorecard. It then proposes linking the two by identifying performance measures that align the internal, financial, innovation/learning, and customer perspectives of the balanced scorecard with goals like unit cost reduction, time reduction, waste reduction, and flexible response in the supply chain. Aligning key performance indicators across these perspectives can help optimize supply chain performance.
SUPPLY CHAIN STRATEGIES
(i) Cycle View (ii) Push & Pull View of the Supply Chain, Supply Chain Responsiveness. Strategic Fit between Business Strategy and Supply Chain Strategy, Achievement of Strategic Fit through different steps, Obstacles to achieving Strategic Fit.
Global supply chain management
Global supply chain management involves coordinating activities across countries. A global supply chain connects organizations worldwide to source materials and produce goods for customers. Managing such a complex network introduces challenges like long distances, currency fluctuations, and differing business environments. However, companies also benefit from expanded markets, lower costs, and competitive advantages. To operate efficiently, firms must integrate worldwide operations and have the agility to respond to various global factors. For example, a large computer company redesigned its supply chain from 33 plants across many countries to 12 plants within 3 regional zones, reducing costs and improving profits.
Supply chain management
This document provides a summary of key concepts in supply chain management. It discusses supply chains, supply chain management, value chain management, operations management, logistics management, lean supply chains, agile supply chains, and the objectives and decision phases of supply chains. It also covers integrated supply chain management, barriers to supply chain management implementation, attributes affecting implementation like technology and communication, and reasons for many versus few suppliers in a supply chain.
Network design
The document discusses factors that influence distribution network design for supply chains. It describes how distribution affects costs and customer experience. Distribution network design must balance customer needs like response time and product availability with supply chain costs like inventory and transportation. The document outlines different distribution network design options and provides examples of how companies implement various designs. It also discusses factors like strategic objectives, technology, infrastructure, competition and costs that influence decisions around facility roles, locations, capacity and market allocation.
logistics system analysis and design
The document discusses logistics system analysis and design. It defines a logistics system as comprising all integrated processes related to logistics, including inventory flow, information flow, physical distribution, manufacturing support, and procurement between customers and suppliers. It states that logistics system analysis involves collecting data, understanding processes, identifying problems, and recommending improvements. It also notes that logistics system design is an important step that comes after analysis, where a new system is designed based on requirements and analysis of the existing system.
An introduction to supply chain management and role of transportataion
This presentation provides a brief introduction about “supply chain management” and especially, the role of transportation in the smooth operation of “modern” supply chains is discussed.
use of IT in supply chain management
This document provides an overview of information technology management in supply chain operations, using Walmart as a case study. It discusses key concepts like traditional vs integrated supply chain views, the importance and benefits of IT in supply chain management. It also describes various types of IT systems used in supply chains, including ERP, transportation management, inventory management, EDI, barcoding, RFID and e-commerce systems. Finally, it discusses management of supply chain information systems and the development process.
Integrated logistics and supply chain framework
The document provides an overview of supply chain and logistics concepts for students. It defines key terms like supply chain management, logistics management, and physical distribution. It also outlines the typical flow of activities in a company's supply chain, from sales forecasting to order fulfillment. The goal is for students to understand the roles and importance of effective logistics and supply chain management.
Introduction to Supply Chain Management
1. Supply chain management involves efficiently integrating suppliers, manufacturers, warehouses, and retailers so that products are delivered to customers in the right quantities, locations, and times to minimize costs while meeting service requirements.
2. Key aspects of supply chain management include facilities, inventory, transportation, information sharing, sourcing decisions, and pricing strategies. These factors work together to balance efficiency and responsiveness across the supply chain.
3. An organization's competitive strategy helps determine which supply chain drivers it prioritizes, such as Walmart focusing on low inventory, centralized facilities, and information sharing to support its low-price model.
Process view of scm & value chain analysis
This document discusses supply chain planning and scheduling. It begins by defining a supply chain and outlining the objectives of supply chain management. It then describes the three decision phases of supply chain management: supply chain strategy/design, supply chain planning, and supply chain operations. Finally, it discusses the process view of supply chains using the cycle view and push/pull view and analyzes value within a supply chain.
Procurement and Sourcing Strategies
Procurement and sourcing involve finding suppliers and negotiating contracts to obtain goods and services for a business. There are various types of procurement like direct, indirect, and service procurement. The procurement process identifies steps to acquire necessary goods and services in a cost-effective way. Strategic procurement aims to choose suppliers that match business goals, procuring higher quality items while managing supply chain risk. Sourcing is the process of selecting suppliers to provide quality products at affordable prices through activities like market research, establishing standards, and negotiating contracts. It allows for cost management, stable supply chains, and reduced risk through strong supplier relationships.
Global Supply Chain
The document discusses global supply chain management strategies for a multinational automotive company. It outlines the company's manufacturing locations around the world and production responsibilities at each plant. It then discusses factors like foreign competition, technology diffusion, costs, taxes, and regulations that companies must consider for an effective global supply chain. Risk management strategies are also summarized, including redundancy, rapid response, and adaptability across the supply chain.
LOGISTICS PLANNING
This document summarizes key aspects of vehicle routing problems (VRP). It discusses the traveling salesman problem (TSP) as a special case of VRP where a single vehicle must visit multiple locations. It also describes more complex VRP formulations that involve multiple vehicles with capacity constraints serving multiple customers. Heuristics for constructing initial feasible routes and improving routes are described. Finally, an example employee pickup VRP problem in Bangalore, India is presented to illustrate a real-world application of VRP.
Chapter 13 transportation in a supply chain
This document discusses transportation in supply chain management. It covers the following key topics:
1. The various modes of transportation used in supply chains including air, truck, rail, water, and pipeline. It provides data on freight volumes and values for each mode.
2. The design options for transportation networks including direct shipping, shipping through distribution centers, and tailored networks matching individual product and customer needs.
3. The trade-offs involved in transportation design between transportation and inventory costs, and transportation cost and customer responsiveness.
4. How information technology and risk management can help optimize transportation decision making.
Supply chain management
A presentation on the Supply Chain Management as per Production and Marketing are concerns, the highly relayed branch of any business house is to concentrate on this particular topic.
Logistics Management
Logistics management is the part of supply chain management that plans, implements, and controls the efficient, effective forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customer's requirements
Supply Chain Strategy
This document provides an overview of supply chain strategy and how it relates to business strategy. It discusses various views on defining supply chain strategy, including:
- Matching supply chain strategy to product characteristics, such as using efficient supply chains for functional products and responsive supply chains for innovative products.
- Considering demand and supply uncertainty, such as using agile supply chains for high supply and demand uncertainty.
- Examining market characteristics and using lean strategies for stable markets with predictable demand, and agile strategies for dynamic markets with unpredictable demand.
- The concept of "leagile", using elements of both lean and agile strategies such as applying lean upstream and agile downstream.
The document serves as an introduction to
GLOBAL SOURCING
The document discusses global sourcing, which involves identifying the best supplier regardless of location. Global sourcing includes shared services and outsourcing solutions that can be implemented domestically or offshore. Key factors to consider in global sourcing include material costs, transportation costs, inventory costs, taxes and duties, supply performance, and risks. There are also quantitative aspects like logistics and economics, and qualitative aspects such as political, legal, and cultural factors. Risks of global sourcing include distance from suppliers, communication challenges, currency fluctuations, quality issues, and staffing needs.
Logistic & supply chain management
Logistic and supply chain management involves planning and coordinating all activities from procuring raw materials to delivering the final product to customers. The goal is to achieve the desired level of service and quality at the lowest possible cost. Competitive advantage comes from either lower costs or providing greater value to customers than competitors. Logistics management encompasses activities like network design, transportation, inventory, and warehousing that facilitate the flow of materials and information from suppliers to customers.
Logistics Management
This document discusses logistics management strategies and their formulation and implementation. It covers linking a firm's strategy to its logistics strategy, setting logistics goals and making decisions, analyzing logistics networks, formulating logistics strategies including different channel strategies, and implementing and measuring performance of logistics strategies. Key aspects covered include aligning business and logistics strategies, common logistics challenges, and key performance indicators for evaluating service and inventory management.
Value Of Information
This document discusses how information availability can help reduce supply chain costs and variability. It provides three key points:
1) Information availability helps coordinate supply chain systems and strategies, enabling reduced lead times, better demand forecasts, and lower inventory levels.
2) The "bullwhip effect", where demand variability increases as information moves up the supply chain, can be reduced through strategies like information sharing and collaborative forecasting.
3) Integrating supply chain planning and decision making across companies using shared information can help optimize the system as a whole rather than each company optimizing locally. This coordination allows trade-offs like inventory versus transportation costs to be managed more effectively.
global supply chain managment
Global supply chain management involves planning and coordinating all supply chain activities, including sourcing, procurement, manufacturing, logistics, and distribution. It aims to integrate supply and demand management across companies and their suppliers and customers. The global supply chain includes suppliers, corporations, and customers, with the flow of information, products, and funds between them. Key supply chain activities are purchasing, manufacturing, logistics, distribution, transportation, and marketing. The supply chain can be simple, involving a supplier, company, and customer, or extended to include additional suppliers, customers, and service providers.
Distribution Strategies
The document discusses various distribution strategies and concepts. It begins by defining distribution strategies and describing different channel types like intensive, selective, and exclusive distribution. It then discusses direct shipping and its advantages and challenges. Other concepts covered include intermediate inventory points distribution, traditional warehousing versus cross-docking versus centralized pooling strategies, transportation and transhipment.
Basics of Supply Chain Management
1. Supply chain management involves coordinating the flow of materials, information, and finances between suppliers, manufacturers, distributors, retailers, and customers. It aims to optimize the production and distribution of goods and services.
2. Key aspects of supply chain management include purchasing, logistics, and warehousing. Purchasing links an organization to its suppliers, logistics involves transporting materials, and warehousing manages inventory storage and order fulfillment.
3. Developing partnerships with suppliers is important in supply chain management. Strategic supplier relationships can help lower costs, improve quality, and increase flexibility throughout the supply chain.
13 Measuring Sc Performance
This document discusses various approaches to measuring supply chain performance, including the Balanced Scorecard, SCOR model, Logistics Scoreboard, activity-based costing, and economic value added. It provides examples of performance measures that can be used across different areas of the supply chain, including customer service, processes, purchasing, manufacturing, logistics, administration, and marketing. Key frameworks like the Balanced Scorecard emphasize the importance of using a mix of financial and non-financial metrics to evaluate performance from multiple perspectives.
Supplier selection
The document discusses supplier selection and evaluation. It defines supplier selection and outlines a 7 step process for evaluating and selecting suppliers, including recognizing the need, identifying requirements, determining strategy, identifying potential suppliers, limiting the pool, evaluating, and selecting. It also discusses using Carter's 10 C's model to evaluate suppliers based on competency, capacity, consistency, cost and other factors. An example application of the process is provided where 4 potential suppliers are evaluated against the 10 C's and weighted factors to determine the best option.
International procurement
The document discusses the benefits and risks of international procurement. It begins by defining procurement and outlining the research objectives, which are to examine the benefits and risks of international procurement and determine if issues exist globally. Key benefits identified are lower costs due to differences in currency exchange rates and labor costs between countries. However, risks include fraud, poor quality of goods/services, and difficulties managing distant suppliers. The document provides examples and sources to support the benefits and risks discussed.
Global Sourcing Best Practices
The document outlines best practices for companies transitioning from domestic to global sourcing strategies. It discusses 5 levels for this transition ranging from only domestic purchasing to fully integrated global sourcing. Key recommendations include having executive commitment, establishing cross-functional teams, defining clear processes and metrics, integrating systems to share information worldwide, and ensuring regular communication to translate the global vision into reality.
More Related Content
What's hot
use of IT in supply chain management
This document provides an overview of information technology management in supply chain operations, using Walmart as a case study. It discusses key concepts like traditional vs integrated supply chain views, the importance and benefits of IT in supply chain management. It also describes various types of IT systems used in supply chains, including ERP, transportation management, inventory management, EDI, barcoding, RFID and e-commerce systems. Finally, it discusses management of supply chain information systems and the development process.
Integrated logistics and supply chain framework
The document provides an overview of supply chain and logistics concepts for students. It defines key terms like supply chain management, logistics management, and physical distribution. It also outlines the typical flow of activities in a company's supply chain, from sales forecasting to order fulfillment. The goal is for students to understand the roles and importance of effective logistics and supply chain management.
Introduction to Supply Chain Management
1. Supply chain management involves efficiently integrating suppliers, manufacturers, warehouses, and retailers so that products are delivered to customers in the right quantities, locations, and times to minimize costs while meeting service requirements.
2. Key aspects of supply chain management include facilities, inventory, transportation, information sharing, sourcing decisions, and pricing strategies. These factors work together to balance efficiency and responsiveness across the supply chain.
3. An organization's competitive strategy helps determine which supply chain drivers it prioritizes, such as Walmart focusing on low inventory, centralized facilities, and information sharing to support its low-price model.
Process view of scm & value chain analysis
This document discusses supply chain planning and scheduling. It begins by defining a supply chain and outlining the objectives of supply chain management. It then describes the three decision phases of supply chain management: supply chain strategy/design, supply chain planning, and supply chain operations. Finally, it discusses the process view of supply chains using the cycle view and push/pull view and analyzes value within a supply chain.
Procurement and Sourcing Strategies
Procurement and sourcing involve finding suppliers and negotiating contracts to obtain goods and services for a business. There are various types of procurement like direct, indirect, and service procurement. The procurement process identifies steps to acquire necessary goods and services in a cost-effective way. Strategic procurement aims to choose suppliers that match business goals, procuring higher quality items while managing supply chain risk. Sourcing is the process of selecting suppliers to provide quality products at affordable prices through activities like market research, establishing standards, and negotiating contracts. It allows for cost management, stable supply chains, and reduced risk through strong supplier relationships.
Global Supply Chain
The document discusses global supply chain management strategies for a multinational automotive company. It outlines the company's manufacturing locations around the world and production responsibilities at each plant. It then discusses factors like foreign competition, technology diffusion, costs, taxes, and regulations that companies must consider for an effective global supply chain. Risk management strategies are also summarized, including redundancy, rapid response, and adaptability across the supply chain.
LOGISTICS PLANNING
This document summarizes key aspects of vehicle routing problems (VRP). It discusses the traveling salesman problem (TSP) as a special case of VRP where a single vehicle must visit multiple locations. It also describes more complex VRP formulations that involve multiple vehicles with capacity constraints serving multiple customers. Heuristics for constructing initial feasible routes and improving routes are described. Finally, an example employee pickup VRP problem in Bangalore, India is presented to illustrate a real-world application of VRP.
Chapter 13 transportation in a supply chain
This document discusses transportation in supply chain management. It covers the following key topics:
1. The various modes of transportation used in supply chains including air, truck, rail, water, and pipeline. It provides data on freight volumes and values for each mode.
2. The design options for transportation networks including direct shipping, shipping through distribution centers, and tailored networks matching individual product and customer needs.
3. The trade-offs involved in transportation design between transportation and inventory costs, and transportation cost and customer responsiveness.
4. How information technology and risk management can help optimize transportation decision making.
Supply chain management
A presentation on the Supply Chain Management as per Production and Marketing are concerns, the highly relayed branch of any business house is to concentrate on this particular topic.
Logistics Management
Logistics management is the part of supply chain management that plans, implements, and controls the efficient, effective forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customer's requirements
Supply Chain Strategy
This document provides an overview of supply chain strategy and how it relates to business strategy. It discusses various views on defining supply chain strategy, including:
- Matching supply chain strategy to product characteristics, such as using efficient supply chains for functional products and responsive supply chains for innovative products.
- Considering demand and supply uncertainty, such as using agile supply chains for high supply and demand uncertainty.
- Examining market characteristics and using lean strategies for stable markets with predictable demand, and agile strategies for dynamic markets with unpredictable demand.
- The concept of "leagile", using elements of both lean and agile strategies such as applying lean upstream and agile downstream.
The document serves as an introduction to
GLOBAL SOURCING
The document discusses global sourcing, which involves identifying the best supplier regardless of location. Global sourcing includes shared services and outsourcing solutions that can be implemented domestically or offshore. Key factors to consider in global sourcing include material costs, transportation costs, inventory costs, taxes and duties, supply performance, and risks. There are also quantitative aspects like logistics and economics, and qualitative aspects such as political, legal, and cultural factors. Risks of global sourcing include distance from suppliers, communication challenges, currency fluctuations, quality issues, and staffing needs.
Logistic & supply chain management
Logistic and supply chain management involves planning and coordinating all activities from procuring raw materials to delivering the final product to customers. The goal is to achieve the desired level of service and quality at the lowest possible cost. Competitive advantage comes from either lower costs or providing greater value to customers than competitors. Logistics management encompasses activities like network design, transportation, inventory, and warehousing that facilitate the flow of materials and information from suppliers to customers.
Logistics Management
This document discusses logistics management strategies and their formulation and implementation. It covers linking a firm's strategy to its logistics strategy, setting logistics goals and making decisions, analyzing logistics networks, formulating logistics strategies including different channel strategies, and implementing and measuring performance of logistics strategies. Key aspects covered include aligning business and logistics strategies, common logistics challenges, and key performance indicators for evaluating service and inventory management.
Value Of Information
This document discusses how information availability can help reduce supply chain costs and variability. It provides three key points:
1) Information availability helps coordinate supply chain systems and strategies, enabling reduced lead times, better demand forecasts, and lower inventory levels.
2) The "bullwhip effect", where demand variability increases as information moves up the supply chain, can be reduced through strategies like information sharing and collaborative forecasting.
3) Integrating supply chain planning and decision making across companies using shared information can help optimize the system as a whole rather than each company optimizing locally. This coordination allows trade-offs like inventory versus transportation costs to be managed more effectively.
global supply chain managment
Global supply chain management involves planning and coordinating all supply chain activities, including sourcing, procurement, manufacturing, logistics, and distribution. It aims to integrate supply and demand management across companies and their suppliers and customers. The global supply chain includes suppliers, corporations, and customers, with the flow of information, products, and funds between them. Key supply chain activities are purchasing, manufacturing, logistics, distribution, transportation, and marketing. The supply chain can be simple, involving a supplier, company, and customer, or extended to include additional suppliers, customers, and service providers.
Distribution Strategies
The document discusses various distribution strategies and concepts. It begins by defining distribution strategies and describing different channel types like intensive, selective, and exclusive distribution. It then discusses direct shipping and its advantages and challenges. Other concepts covered include intermediate inventory points distribution, traditional warehousing versus cross-docking versus centralized pooling strategies, transportation and transhipment.
Basics of Supply Chain Management
1. Supply chain management involves coordinating the flow of materials, information, and finances between suppliers, manufacturers, distributors, retailers, and customers. It aims to optimize the production and distribution of goods and services.
2. Key aspects of supply chain management include purchasing, logistics, and warehousing. Purchasing links an organization to its suppliers, logistics involves transporting materials, and warehousing manages inventory storage and order fulfillment.
3. Developing partnerships with suppliers is important in supply chain management. Strategic supplier relationships can help lower costs, improve quality, and increase flexibility throughout the supply chain.
13 Measuring Sc Performance
This document discusses various approaches to measuring supply chain performance, including the Balanced Scorecard, SCOR model, Logistics Scoreboard, activity-based costing, and economic value added. It provides examples of performance measures that can be used across different areas of the supply chain, including customer service, processes, purchasing, manufacturing, logistics, administration, and marketing. Key frameworks like the Balanced Scorecard emphasize the importance of using a mix of financial and non-financial metrics to evaluate performance from multiple perspectives.
Supplier selection
The document discusses supplier selection and evaluation. It defines supplier selection and outlines a 7 step process for evaluating and selecting suppliers, including recognizing the need, identifying requirements, determining strategy, identifying potential suppliers, limiting the pool, evaluating, and selecting. It also discusses using Carter's 10 C's model to evaluate suppliers based on competency, capacity, consistency, cost and other factors. An example application of the process is provided where 4 potential suppliers are evaluated against the 10 C's and weighted factors to determine the best option.
What's hot (20)
Viewers also liked
International procurement
The document discusses the benefits and risks of international procurement. It begins by defining procurement and outlining the research objectives, which are to examine the benefits and risks of international procurement and determine if issues exist globally. Key benefits identified are lower costs due to differences in currency exchange rates and labor costs between countries. However, risks include fraud, poor quality of goods/services, and difficulties managing distant suppliers. The document provides examples and sources to support the benefits and risks discussed.
Global Sourcing Best Practices
The document outlines best practices for companies transitioning from domestic to global sourcing strategies. It discusses 5 levels for this transition ranging from only domestic purchasing to fully integrated global sourcing. Key recommendations include having executive commitment, establishing cross-functional teams, defining clear processes and metrics, integrating systems to share information worldwide, and ensuring regular communication to translate the global vision into reality.
Global Sourcing
Global sourcing entails identifying, evaluating, negotiating and configuring supply across multiple geographies to reduce costs, maximize performance and mitigate risks. It requires balancing factors like cost, performance, and risk, which are heightened when sourcing globally due to additional complexities. Supply managers must understand classifications like Harmonized System codes and International Commerce Terms that define responsibilities for cross-border shipping. Indian retail chains are now stepping up global sourcing from locations like China, Malaysia, and Europe to shore up margins and offer lower prices.
1 fundamentals of international purchasing
This document discusses fundamentals of international purchasing and procurement strategy. It defines international purchasing as commercial transactions between buyers and suppliers in different countries. The goals are to meet manufacturing needs, ensure reliable supply sources, and access optimal global sources regardless of location. Drivers of international purchasing include technological advances, declining communication/transportation costs, and economic transformation in emerging markets. Challenges include lack of cross-cultural skills, tariffs, long lead times, and legal/logistical issues. Success requires centralized decision making, decentralized operations, communication, information sharing, critical resources, and sourcing/contracting systems. Future trends involve seeking globally capable suppliers and cost reduction through low-cost emerging markets.
Global Sourcing Trends, Challenges, and Solutions For 2015
Global Sourcing is viewed as a common business practice but is surprisingly not well defined in practice and can mean different things depending on where one is that. However, western CEOs and CPOs view it as a basic practice to be competitive despite feeling the process is not well measured or managed. Solutions for better performance come down to developing people and evolving process.
GLOBAL SOURCING
• Cost of Global Sourcing
• Currency Exchange Rates
• Organizational and Behavioural Issues
• Export Administration Regulations
• Foreign Trade Zone
Viewers also liked (6)
Global Sourcing Trends, Challenges, and Solutions For 2015
Global Sourcing Trends, Challenges, and Solutions For 2015
Similar to international sourcing
IBM UNIT 4..pptx
This document discusses various production and supply chain issues that international businesses must consider. It covers factors like facility location, scale of operations, cost of production, and supply chain management. Specific factors discussed for facility location include customer proximity, availability of skilled labor, and environmental policy. Scale of operations can refer to small, medium, or large businesses. Costs include fixed and variable costs. Make-or-buy decisions must also be made. Globalization further impacts supply chain networks.
Global marketing of asem
Global marketing management involves planning strategies for entering foreign markets. There are four main market entry strategies: exporting, contractual agreements like licensing and franchising, strategic alliances, and direct foreign investment. The optimal strategy depends on factors like market size, competition, regulations, and a company's objectives and resources. Planning is required to systematically analyze countries, adapt marketing mix tactics to local conditions, and implement and control the marketing plan. Organizational structures must also be considered to effectively manage global competition.
Global marketing
The document discusses key concepts in global marketing. It defines global marketing as coordinating marketing activities across countries to satisfy individual, organizational, and societal goals. It outlines the evolution from a core domestic strategy to an internationalized strategy and finally a globalized strategy. Some key considerations for global marketing decisions include political/regulatory environment, financial/economic factors, socio-cultural issues, competition, and local infrastructure. Channel management is also discussed as developing strategies, policies, and programs for selling and servicing customers through various marketing channels.
Chapter iv operationalizing strategy
Operationalizing strategy refers to the process of allocating resources to implement an organization's chosen strategy. This involves various management activities such as setting short-term objectives, developing functional tactics, establishing policies to guide decisions, allocating resources, managing conflicts, and empowering employees. Functional tactics translate broad strategies into specific actions for individual business functions. They require greater specificity and have a shorter time horizon than business strategies. Policies standardize routine decisions to clarify discretion and empower employees while ensuring consistency with strategy. Resource allocation, conflict management, training, and decentralized decision-making can empower employees to implement tactics, while peer-based control and performance tracking exercise control over empowered employees.
Global marketing - Unitedworld School of Business
The document discusses global marketing and internationalization. It defines global marketing as coordinating marketing activities across different country markets to create exchanges that satisfy individual, organizational, and societal goals. Internationalization is increasing involvement in international operations, with advantages like risk spreading but also disadvantages like cultural barriers. The document outlines decisions involved in major international marketing like market selection factors, entry strategies, and channel management.
Gerardo Loredo I 1015
Gerardo Loredo has over 20 years of experience in purchasing, supply chain, and operations management. He has held roles such as Purchasing Director for Valeo and Volvo CE, Global Purchasing Manager for General Motors, and Operations Manager for General Motors. In these roles, he developed supplier networks, implemented cost reduction strategies, and developed purchasing processes. He has experience leading international teams and has achieved millions of dollars in savings through strategic sourcing and process improvements.
Long term strategy
The document discusses various long-term strategies and objectives that companies can pursue, including concentrated growth, market development, product development, innovation, integration, diversification, turnaround, divestiture, liquidation, and bankruptcy. It also covers strategic tools like the balanced scorecard, generic strategies of cost leadership and differentiation, and combination strategies like joint ventures and strategic alliances.
Logistic management
The document discusses logistics management and supply chain management. It defines logistics management as planning and implementing effective movement and storage of goods and information from origin to destination to meet customer demands. The key objectives of logistics management are reducing costs, improving customer service, increasing sales, and establishing competitive advantages. The document also discusses international marketing, supply chain trends, third-party logistics, and fourth-party logistics.
I UNIT.pptx sales and distribution management
This document discusses corporate strategy and strategic management. It begins by defining strategy as a company's plan to attract customers, position itself in the market, compete successfully, and achieve objectives. A strategy must evolve in response to competitors, customers, technology, and market conditions. The document then discusses strategic vision, mission statements, core competencies, competitive advantage, and strategic analysis including PEST and Porter's Five Forces frameworks. It emphasizes that strategic management involves developing a strategic vision, analyzing the internal and external environment, and executing the strategy.
unit 4.pptx
The document discusses distribution strategies and logistics supply chain management. It defines distribution strategy as a plan to deliver products or services to targeted customers via a supply chain. It describes different types of distribution strategies like direct, indirect, intensive, exclusive, and selective channels. It also discusses distribution channels from zero intermediaries to three intermediaries. The document then covers benchmarking, describing it as measuring performance against best practices to improve. It outlines steps in benchmarking, components like financial and product benchmarking, and benchmarking the supply chain. Finally, it discusses outsourcing logistics, types of third-party logistics providers, and costs in logistics supply chain management.
Supply Chain Management Training in Powerpoint | By ex-McKinsey Consultants
Supply Chain Management Training created in Powerpoint by ex-McKinsey Consultants.
Training including the 5 phases of Supply Chain Management: 1.Supply Chain Strategy, 2.Demand & Supply Chain Planning, 3.Sourcing & Procurement, 4.Manufacturing, 5.Logistics & Distribution.
Save hundreds of hours of work by downloading the full Powerpoint presentation available on this link: https://www.slidebooks.com/products/supply-chain-management-toolkit
Go to www.slidebooks.com to access the World's Best Business & Consulting Toolkits.
Join today the 100,000+ CEOs, Executives & Consultants using our Business & Consulting Toolkits to improve the revenue & efficiency of their Organization.
The Toolkits include Business Frameworks, Analysis Tools & Document Templates in Powerpoint & Excel created by Ex-McKinsey & Deloitte Management Consultants.
The Toolkits cover many Business areas such as: Strategy, Finance, Operations, Change Management, Project Management & Leadership.
Ch-12.pptx
This document discusses various aspects of international marketing planning and strategies. It covers:
1. The 4 phases of international marketing planning - preliminary analysis, defining target markets, developing a marketing plan, and implementation and control.
2. Alternative market entry strategies such as exporting, contractual agreements like licensing and franchising, and strategic alliances.
3. The evolution of global marketing approaches from standardization vs. adaptation to global integration vs. local responsiveness.
Lecture 4 industry studies v2 student
This document discusses strategies for global supply chains and distribution in the consumer goods industry. It begins by outlining the complexity of operating globally at scale and the strategic issues around supply chain management. It then evaluates the pros and cons of vertical integration and different distribution approaches. Various distribution channel models are presented and the advantages of intermediaries and wholly owned distribution are discussed. Technological advancements are changing the nature of distribution by enabling new predictive and direct models.
Session 6 Internationalisation and international market entry strategies.pptx
Internationalisation and international market entry strategies, which are often used by multinational companies to enter new market.
Strategy formulation and implementation
The document discusses strategic management and planning, including defining strategy formulation as establishing goals and plans and strategy implementation as using tools to achieve strategic outcomes. It covers topics such as analyzing organizational strengths and weaknesses, developing grand strategies for growth, stability, or retrenchment, and implementing strategies through leadership, structural design, information and control systems, and human resources. Key models and frameworks are presented for strategic management processes, global corporate strategies, and competitive strategies.
Angelita yap pua resume 02192017
This individual has over 30 years of supply chain management experience across
telecommunications, manufacturing, and retail. They are seeking a leadership role utilizing their
experience in procurement, vendor management, business analytics, and developing business
partnerships. Key experiences include implementing purchase controls affecting $500M in annual
spend for a telecommunications company and managing the complex outsourced manufacturing
model for garments and furniture. They demonstrate skills in ERP systems, strategic sourcing,
negotiations, and leading teams through change.
Strategic management lecture2
This document provides an overview of strategic management concepts and topics that will be covered in a strategic management course. It discusses key concepts like vision, mission, objectives, internal and external analysis, strategy formulation and implementation. It outlines the traditional and modern flows of strategic management in organizations and the roles of different managers. The document also differentiates between deliberate and emergent strategies and provides criteria for developing objectives.
Global marketing
Global marketing involves coordinating marketing activities across different country markets to create exchanges that satisfy individual, organizational, and societal goals. As companies internationalize and globalize their strategies, they must make major decisions about which countries to enter and how using various options like exporting, licensing, franchising, strategic alliances, global or multi-country strategies. When entering new international markets, companies consider factors like political/regulatory environment, financial/economic environment, socio-cultural issues, local competition, and infrastructure. Channel management is developing and aligning customer interfaces like distribution channels across marketing, sales, and services to reach the widest customer base and drive growth and profits.
HP Session 9.pdf
International strategic management involves determining a firm's mission, objectives, and strategic plan. It requires evaluating internal resources and external opportunities/threats. Key elements include environmental scanning, internal analysis, goal setting, and implementation. Strategies must balance global integration with national responsiveness. Options include global, multi-domestic, international, and transnational strategies. Specialized strategies also exist like first-mover, bottom of the pyramid, and born-global approaches. Effective strategic management is needed to coordinate diverse operations in today's complex global economy.
LOGISTICS AND SUPPLY CHAIN MANAGEMENT.pptx
The document discusses supply chain management. It defines supply chain management as the process of delivering a product from raw material to the consumer. It notes that supply chain management includes planning, sourcing, production, delivery, and handling customer complaints. It also discusses the importance of supply chain management in improving customer satisfaction and business performance. Finally, it outlines the key components of an effective supply chain management process.
Similar to international sourcing (20)
Supply Chain Management Training in Powerpoint | By ex-McKinsey Consultants
Supply Chain Management Training in Powerpoint | By ex-McKinsey Consultants
Session 6 Internationalisation and international market entry strategies.pptx
Session 6 Internationalisation and international market entry strategies.pptx
More from Ankit
chapter 17
Organizational decline can be a difficult process to manage. It is characterized by decreased personnel, centralization of decision making, lack of long term planning, curtailed innovation, scapegoating of leaders, resistance to change, increased turnover, low morale, loss of resources, fragmented groups pursuing self interest, loss of credibility for leaders, increased conflict, and decaying employee motivation. Management must directly address the ambiguity, communicate extensively about strategic changes, and find innovative ways to handle cutbacks in order to best manage through organizational decline.
chapter 16
This document discusses organizational culture and how it develops and is sustained within organizations. It defines organizational culture as shared meanings represented through patterns of beliefs, symbols, rituals and practices. A dominant culture expresses core values shared by most members, while subcultures can form around common experiences. A strong culture is characterized by intensely held and widely shared core values that align with strategy, environment and technology to increase effectiveness. Culture acts as a substitute for formal controls by influencing employee behavior. Founders and top management impact culture through actions and decisions, while socialization and learning through stories, rituals, symbols and language transmit culture to new employees over time.
Ot chapter 15
This document discusses organizational conflict and techniques for managing it. It defines conflict and contrasts traditional and interactionist views. The main sources of organizational conflict are mutual task dependence, one-way task dependence, horizontal differentiation, low formalization, dependence on scarce resources, different evaluation criteria, participative decision making, heterogeneity, status incongruence, role dissatisfaction, and communication distortion. Techniques for resolving conflicts include domination, compromise, integration, avoidance, acceptance, establishing superordinate goals, reducing interdependence, expanding resources, and mutual problem solving. The interactionist view sees some conflict as potentially beneficial in stimulating change, while excessive conflict can hinder effectiveness.
Ot chapter 14
1. The document discusses managing organizational change and defines planned change as changes that are purposeful and aimed at keeping an organization viable.
2. Structural changes involve altering authority patterns, information access, rewards allocation, technology, and other structural elements.
3. Organizations face change through opportunities they want to pursue or problems they need to address, which can include changes in objectives, acquisitions, labor shortages, or unionization.
Ot chapter 13
The document discusses strategies that organizations use to manage their environment and reduce uncertainty. It describes internal strategies like domain choice, recruitment, environmental scanning, buffering, and smoothing, which involve adapting the organization. External strategies discussed include advertising, contracting, coopting, coalescing, and lobbying, which aim to alter the environment. The most comprehensive strategy an organization can take when facing an unfavorable environment is domain choice, such as broadening its strategy. Managing the environment effectively requires analyzing sources of uncertainty and properly implementing appropriate strategies.
Ot chapter 12
The document discusses different types of organizational structures, focusing on adhocracies. It describes the matrix structure, noting that it adds flexibility to the bureaucracy form. The document outlines when a matrix is appropriate to use and discusses two types: temporary and permanent matrices. It also discusses Theory Z organizations, the collateral form, network structures, and other examples of adhocracies like task forces, committees, and the collegial form.
Ot chapter 11
The document discusses bureaucracy and organizational structure. It defines Weber's model of bureaucracy, outlining its key characteristics like division of labor, authority hierarchies, and impersonal rules. The document also notes both advantages, like efficiency, and disadvantages, like goal displacement and employee alienation. It considers arguments that bureaucracy is becoming obsolete due to changes, but also reasons it remains prevalent, like its ability to control large organizations.
Ot chapter 10
The document discusses five common organizational structures: simple structure, machine bureaucracy, professional bureaucracy, divisional structure, and adhocracy. Each structure is defined based on characteristics like specialization, formalization, centralization, and environmental factors. Strengths and weaknesses of each structure are provided to help determine when each is best suited for an organization. The structures range from more mechanistic and standardized forms like machine bureaucracy to more organic and flexible forms like adhocracy.
Ot chapter 9
This document discusses different perspectives on how organizational structures emerge and change over time. It describes the power-control view, which argues that structures are determined through political processes as those in power seek to maintain and enhance their control. Key points of the power-control model include that structural decisions are the result of divergent interests among decision-makers, and that contingency factors like technology and environment act as constraints rather than sole determinants of structure. The implications are that those in power will prefer structures with degrees of complexity, formalization, and centralization that maximize their control.
Ot chapter 8
The document discusses how an organization's structure is influenced by its environment. It defines the general and specific environments and describes how environmental uncertainty can vary. When uncertainty is high, organizations tend toward organic structures that are flexible and adaptive, while stable environments suit mechanistic structures. Different models of environmental types are presented, from placid to turbulent. Organizational change is described as a three-stage process of variation, selection, and retention. The relationship between environment and an organization's complexity, formalization, and centralization is explained. High uncertainty leads to greater complexity and decentralization, while stability allows for formality and centralization.
Ot chapter 7
The document discusses different perspectives on the relationship between technology and organizational structure. It describes Woodward's categorization of technologies as unit, mass, or process production and her finding that effectiveness results from an appropriate technology-structure fit. It also covers Perrow's two dimensions of task variability and problem analyzability and their four technology types. Finally, it discusses Thompson's categories of long-linked, mediating, and intensive technologies and how routineness is a common factor across perspectives. The document concludes that the influence of technology on structure is supported by job-level research and most applicable to small organizations.
Ot chapter 6
The document discusses how organization size affects structure. It defines size as total employee number and notes size is closely associated with structure. Research like the Aston Group studies concluded increased size is associated with greater specialization and formalization. Size increases complexity but the impact decreases at higher levels. Most studies found size positively correlates to increased formalization. The effect of size on centralization is mixed, with some evidence larger organizations decentralize decision making. The administrative component debate discusses how the ratio of administrators to workers changes with size. Issues small businesses managers care most and least about regarding organization theory are also reviewed.
Ot chapter 4
The document discusses key dimensions of organization structure including complexity, formalization, and centralization. Complexity refers to the degree of differentiation within an organization based on factors like specialization, departmentalization, the number of hierarchical levels, and geographic dispersion. Formalization is the degree to which jobs are standardized through techniques like selection processes, role requirements, rules/procedures, training, and rituals. Centralization refers to the concentration of decision-making at a single point, while decentralization disperses decision-making throughout levels of the organization to allow for faster response to changing conditions.
chapter 3
The document discusses four approaches to organizational effectiveness: goal attainment, systems, strategic constituencies, and competing values. It defines each approach, lists their assumptions, and describes how managers can apply them. The goal attainment approach assesses effectiveness based on goal achievement, while the systems approach focuses on survival factors. The strategic constituencies approach prioritizes satisfying key external groups for resources. The competing values approach recognizes that effectiveness criteria depend on perspective. Managers should consider an organization's stage and internal/external factors when determining which approach to use.
Ot chapter 2
This document provides an overview of the evolution of organization theory from the late 19th century to present day. It discusses early contributors like Adam Smith, the Industrial Revolution, and classical theorists like Taylor, Fayol, and Weber. It then covers the human relations movement sparked by the Hawthorne Studies, Douglas McGregor's Theory X and Theory Y, and the contingency approach. The document traces how organization theory has shifted from viewing organizations as closed rational systems to more open social systems and discusses the major frameworks and perspectives that have emerged over time to understand organizations.
chapter 1
This document provides an overview of organization theory from a textbook. It defines organization theory as the study of how organizations are structured and designed. Organization theory takes a macro view of organizations, focusing on structure and effectiveness, while organizational behavior takes a micro view of individual and group behavior. The document discusses key concepts in organization theory including structure, systems perspective, life cycles, and open vs. closed systems. It also outlines the typical stages in an organization's life cycle from entrepreneurial to decline.
Ot chapter 5
1) The document discusses different levels of strategy for organizations including corporate level strategy, which determines what businesses an organization will be in, and business level strategy, which determines how an organization will compete within each business.
2) It also summarizes various frameworks for classifying strategies such as Miles and Snow's four strategic types of defenders, prospectors, analyzers, and reactors.
3) Porter's three generic competitive strategies are also outlined as cost leadership, differentiation, and focus.
Transportation and delivery strategy
The document discusses transportation strategy and methods. It covers key elements of an effective transportation strategy including meeting customer requirements, mode selection based on cost and transit time, developing carrier relationships, measuring performance, and flexibility. It also discusses common transportation carriers like motor, rail, air, water, and pipeline; factors in carrier and mode selection; and different types of rates and pricing structures. The overall strategy discussed is developing a holistic, integrated approach to transportation management across the supply chain.
Specifications
This document discusses the importance of developing clear specifications in the procurement process. It outlines several key points:
1. Specifications form the basis for communicating requirements to both internal departments and external suppliers. They establish quality and performance standards.
2. Developing specifications requires input from multiple functions to balance goals around performance, cost, and supply availability.
3. Specifications can take many forms from simple to complex, and often use a combination of methods. Care must be taken to ensure specifications allow for competition and are not overly limiting.
4. Both internal departments and external suppliers should be involved early in the specification development process to help ensure requirements are clearly defined and procurable.
Quality managment
The document discusses key aspects of quality management and inventory management from a procurement perspective. It covers four factors that determine quality levels, such as appropriate specifications and monitoring suppliers. Quality is defined in terms of performance, reliability, and conforming to requirements. Total quality management requires customer satisfaction and continuous improvement. Inventory exists to satisfy demand and prevent stockouts, but excess inventory incurs carrying costs. Managing inventory levels, order quantities, and reducing variability can lower costs.
More from Ankit (20)
Recently uploaded
DRUGS AND ITS classification slide share
Any substance (other than food) that is used to prevent, diagnose, treat, or relieve symptoms of a
disease or abnormal condition
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective UpskillingExcellence Foundation for South Sudan
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.How to Build a Module in Odoo 17 Using the Scaffold Method
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
Community pharmacy- Social and preventive pharmacy UNIT 5
Covered community pharmacy topic of the subject Social and preventive pharmacy for Diploma and Bachelor of pharmacy
Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...
Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...National Information Standards Organization (NISO)
This presentation was provided by Steph Pollock of The American Psychological Association’s Journals Program, and Damita Snow, of The American Society of Civil Engineers (ASCE), for the initial session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session One: 'Setting Expectations: a DEIA Primer,' was held June 6, 2024.Natural birth techniques - Mrs.Akanksha Trivedi Rama University
Natural birth techniques - Mrs.Akanksha Trivedi Rama UniversityAkanksha trivedi rama nursing college kanpur.
Natural birth techniques are various type such as/ water birth , alexender method, hypnosis, bradley method, lamaze method etcBÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...Nguyen Thanh Tu Collection
https://app.box.com/s/y977uz6bpd3af4qsebv7r9b7s21935vdAzure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHat
Main Java[All of the Base Concepts}.docx
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
The simplified electron and muon model, Oscillating Spacetime: The Foundation...
Discover the Simplified Electron and Muon Model: A New Wave-Based Approach to Understanding Particles delves into a groundbreaking theory that presents electrons and muons as rotating soliton waves within oscillating spacetime. Geared towards students, researchers, and science buffs, this book breaks down complex ideas into simple explanations. It covers topics such as electron waves, temporal dynamics, and the implications of this model on particle physics. With clear illustrations and easy-to-follow explanations, readers will gain a new outlook on the universe's fundamental nature.
South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)Academy of Science of South Africa
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptxMohd Adib Abd Muin, Senior Lecturer at Universiti Utara Malaysia
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Aberdeen
How to Setup Warehouse & Location in Odoo 17 Inventory
In this slide, we'll explore how to set up warehouses and locations in Odoo 17 Inventory. This will help us manage our stock effectively, track inventory levels, and streamline warehouse operations.
Recently uploaded (20)
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective Upskilling
How to Build a Module in Odoo 17 Using the Scaffold Method
How to Build a Module in Odoo 17 Using the Scaffold Method
Community pharmacy- Social and preventive pharmacy UNIT 5
Community pharmacy- Social and preventive pharmacy UNIT 5
Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...
Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...
Natural birth techniques - Mrs.Akanksha Trivedi Rama University
Natural birth techniques - Mrs.Akanksha Trivedi Rama University
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
Azure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHat
Pride Month Slides 2024 David Douglas School District
Pride Month Slides 2024 David Douglas School District
The simplified electron and muon model, Oscillating Spacetime: The Foundation...
The simplified electron and muon model, Oscillating Spacetime: The Foundation...
South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)
Digital Artefact 1 - Tiny Home Environmental Design
Digital Artefact 1 - Tiny Home Environmental Design
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
How to Setup Warehouse & Location in Odoo 17 Inventory
How to Setup Warehouse & Location in Odoo 17 Inventory
international sourcing
- 2. What is a Strategy • A strategy is an action plan designed to achieve specific long-term goals and objectives. • A strategy should concentrate on the key factors necessary for success and the major actions that should be taken now to ensure the future. • It is the process of determining the relationship of the organisation to its environment, establishing long term objectives and achieving the desired relationship(s) through efficient and effective allocation of resources
- 3. Definition of Strategic Purchasing • The co-ordination and integration of procurement requirements across world-wide business units, looking at common items, processes, technologies and suppliers and the development and management of supplier relationships to acquire goods and services in a way that aids in achieving the immediate needs of the business. • Global purchasing strategy encompasses management of the interfaces among R&D, manufacturing, and marketing on a global basis and Logistics of identifying which production units will serve which particular markets and how components will be supplied for production
- 4. The Strategic Role of Purchasing • Perform sourcing related activities in a way that support the overall objectives of the organization • By establishing external contacts with the supply market, gain important access to External Markets about new technology, potential new materials or services, new sources of supply and changes in market conditions
- 5. Common Reasons for a Global Purchasing Strategy • Reducing overall cost structure • Availability of new technology and capacity. • Establishing alternative sources of supply – reduced risk. • Access to new designs or specialized intellectual capital. • Superior quality - typically due to supplier investment in technology and capacity to attract global business. • Downside • Inventory Investment increase • Increased Transportation / Logistics
- 6. Global Sourcing/Supply Strategies • Significant obstacles to the development of an effective supply strategy lies in the difficulties inherent in translating organizational objectives into supply objectives • Typical supply objectives normally are expressed in quality and function, delivery, quantity, price, terms and conditions, service and so on • Global sourcing brings more profit in the business and helps to extend the business. • The sourcing agent of the global sourcing countries helps you to identify the proper countries. But one needs to follow some global sourcing policies. E-Bidding. ERP, E- Sourcing
- 7. Global Sourcing/Supply Strategy Areas Overall supply strategy is made up of sub strategies that can be grouped together into six major categories: 1. Assurance of supply with emphasis on quality ,quantity considering changes in demand supply 2. Cost reduction strategies 3. Supply chain support strategies 4. Environmental change strategies 5. Competitive edge strategies 6. Risk management strategies
- 8. Development of a Global Procurement Strategy • Strategy 1: Domestic buyers designated by the business unit for international purchasing. • Strategy 2: Business units use subsidiaries or other corporate units for international sourcing assistance. • Strategy 3: International purchasing offices (IPOs) established throughout the world. • Strategy 4: Assign design, build, and sourcing responsibility to a specific business unit somewhere in the world i.e. the exploitation of the comparative advantage of that business unit. • Strategy 5: Integration and co-ordination of world-wide global sourcing strategy. It involves integration and coordination of procurement requirements and the maximisation of buying leverage on a global basis.
- 9. Strategic Components Any strategy chosen should include determination of what, quality, how much, who, when, what price, where, how and why.
- 10. Emerging Markets- Multi Country Approach • China is the primary Low Cost Country (LCC) • But near shore countries need to part of strategy • Brazil, Mexico and Argentina are viable markets and closer to US based companies • Eastern Europe is growing and EU allows for free trade across borders
- 11. Moving Beyond Cost • After cost saving, Companies need to: • Ensure new suppliers will last over time • Help new suppliers to grow with you • Add new suppliers for additional products • How? • Evaluate total value and total cost of global sourcing decisions • Find personnel with worldwide knowledge and skills • Increase visibility of available sourcing data • Enhance knowledge of available global suppliers • Make global sourcing part of overall company operations
- 12. Challenges In Global Purchasing Global Purchasing is not without challenges • Lengthened supply lead times, supply interruptions and delay • Changes in Prices, Increased transportation and logistics costs • Supplier quality • Intellectual property • Lack of supplier responsiveness • Language issues • Reputation issues
- 13. International Business: Strategy, Management, and the New Realities 13 Risks in Global Sourcing • Less-than-expected cost savings • Environmental factors • Weak legal environment • Risk of creating competitors • Inadequate or low-skilled workers • Over-reliance on suppliers • Erosion of morale and commitment among home country employees
- 14. International Business: Strategy, Management, and the New Realities 14 Strategies for Minimizing Risk in Global Sourcing • Firms ought to go offshore for the right reasons • Need to get employees on board • Choose between a captive operation and a contract with outside specialists carefully • Choose countries and suppliers carefully • The firm needs to invest in supplier development and collaboration • Managers need to proactively safeguard interests
- 15. Trends in Global Sourcing Strategy • Trend 1: The Decline of the Exchange Rate Determinism of Sourcing • Trend 2: New Competitive Environment Caused by Excess Worldwide Capacity • Trend 3: Innovations in and Restructuring of International Trade Infrastructure • Trend 4: Enhanced Role of Purchasing Managers • Trend 5: Trend toward Global Manufacturing