This document discusses domestic and global sourcing and supplier selection. It covers insourcing versus outsourcing, steps for sourcing like identifying needs, bidding, and evaluation. Global sourcing can provide cost/price benefits and access to new technology and suppliers. However, it also presents barriers and risks like currency exchange rates, cultural differences, and legal uncertainties between countries. Effective global sourcing requires strategies to transition from domestic to international operations.

1. ISCOM373 Global Sourcing & Procurement

2. Global Sourcing & Procurement Purchasing Supply Chain Management Domestic & Global Sourcing/Supplier Selection Contract Negotiations & Cost/Price Analysis Contract Administration & Supplier Management E-Business & Future Opportunities and Challenges in Purchasing

3. ISCOM373 Week Two Domestic & Global Sourcing/Supplier Selection

4. Domestic & Global Sourcing/Supplier Selection Insourcing vs. outsourcing Core competencies Cost analysis Delivery analysis Quality analysis Technology capabilities Human resource capabilities

5. Domestic & Global Sourcing/Supplier Selection Steps for sourcing Identify goods & services Information gathering Development of solicitation Diversity sourcing requirement

6. Domestic & Global Sourcing/Supplier Selection Steps for sourcing (cont.) Bidding process Evaluation of solicitation responses Contract award Supplier performance evaluation

7. Domestic & Global Sourcing/Supplier Selection Global sourcing questions Cost/price benefit Access to product & process technology Quality Access the best sources available

8. Domestic & Global Sourcing/Supplier Selection Global sourcing questions (cont.) Introduce competition to domestic suppliers React to buying patterns of competitors Establish presence in foreign market

9. Domestic & Global Sourcing/Supplier Selection Barriers to global sourcing Resistance to change Longer lead-times & material pipelines Lack of knowledge of foreign business practices Legal & regulatory Techniques to overcome barriers

10. Domestic & Global Sourcing/Supplier Selection Global sourcing considerations Global sourcing strategies Benefits Cost or price benefits Supplier responsiveness Transition from domestic to global organization

11. Domestic & Global Sourcing/Supplier Selection Global sourcing considerations Global sourcing strategies Benefits (cont.) Access to technology Only source available Increase competitive position

12. Domestic & Global Sourcing/Supplier Selection Global sourcing considerations Risks Currency exchange rate Political uncertainty Cultural differences Logistics Differences in legal systems Import/export considerations