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Global Sourcing - The reorientation in purchasing

Seminararbeit 2002 17 Seiten

BWL - Beschaffung, Produktion, Logistik

Leseprobe

Contents

1 Introduction

2 The concept of Global Sourcing
2.1 Definitions
2.2 The Global Sourcing – Portfolio

3 The Organisation of Global Sourcing
3.1 Strategy

4 The impact of Global Sourcing
4.1 Statistic and empiric data

5 Chances and risks of Global Sourcing
5.1 Chances
5.2 Risks

6 Conclusion

Pictures

Picture 1: Four types of sourcing strategies

Picture 2: Strategic and operative tasks of supply management

Picture 3: Organisation of Global Sourcing

Picture 4: Import Allocation

Picture 5: Country Procurement Share

1 Introduction

One of the most important economic prerequisites for operating on the market is the efficient procurement of quality goods and services. International orientation is hereby becoming increasingly influential. Due to globalisation the world is to be seen as one single market. The impact of this perspective does not only refer to global sales but to global procurement as well. In terms of an international perspective the term 'Global Sourcing' has evolved describing the challenging opportunity of supplementing traditional procurement by international complex activities. Worldwide suppliers, worldwide options and the access to global knowledge increase the need for detailed evaluation.

Global sourcing hereby aims at ensuring a competitive advantage in terms of procurement politics. Those politics equally contain chances and risks. A variety of suppliers also means a variety of quality standards. International sources require international logistics. Therefore global sourcing is beyond simple international purchasing and rather a general strategic orientation towards international supply markets.

Consequently, the focus of this term paper is to determine the strategic orientation of procurement politics towards Global Sourcing on the basis of international supply chain management.

2 The concept of Global Sourcing

2.1 Definitions

Global Sourcing commonly refers to sourcing outside a company's traditional domestic markets with strategic orientation. A company's desire to source globally may be motivated by two different strategic imperatives:

a) international purchasing as globalisation of supply management
b) strategic orientation in order to ensure a competitive advantage by

the economic evaluation of international markets

According to the above mentioned terms it is obvious that global sourcing is not international procurement. Thinking and acting globally is a logical extension of just simply purchasing goods and services. Global Sourcing looks at the best source of products to supply global operations. Life-cycle decisions are based on purchase price, lead-time delivery, technology, flexibility in response to schedule changes, and economic and political stability[1].

Due to that Global Sourcing has evolved to a significant strategic key in supply chain management.

2.2 The Global Sourcing – Portfolio

Due to the complexity of the strategic requirements Global Sourcing is strongly connected to the general policy of the enterprise as well as subordinate divisions like production and marketing. Due to that Global Sourcing has impact on the vertical as well as the horizontal structure of the company as shown in picture 1.

illustration not visible in this excerpt

Picture 1: Four types of sourcing strategies

(Source: following Welge, Martin K.: Globales Management. Erfolgreiche Strategien für den Weltmarkt, Stuttgart 1990, p. 58)

[...]


[1] Welge, Martin K.: Globales Management. Erfolgreiche Strategien für den Weltmarkt, Stuttgart 1990, p. 58

Details

Seiten
17
Jahr
2002
ISBN (eBook)
9783638195331
Dateigröße
442 KB
Sprache
Englisch
Katalognummer
v14028
Institution / Hochschule
Duale Hochschule Baden-Württemberg Heidenheim, früher: Berufsakademie Heidenheim – Economics and International Trade
Note
1,2 (A+)
Schlagworte
Global Sourcing International Management

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Titel: Global Sourcing - The reorientation in purchasing