„Es ist nicht genug zu wissen, man muß es auch anwenden;
Es ist nicht genug zu wollen, man muß es auch tun.“
Goethe
Globalisation of markets progresses rapidly and leads to more competition. In times of Supply Chain Management, Cost Saving Measures and Outsourcing companies have to reorient their business planning. New concepts are necessary to reach a cost efficient production. In this context, globalisation must not only be considered as global selling of own products. With the same effort global logistics and procurement have to be taken into account to gain global success.
Global Sourcing is already known as conscious orientation of a purchasing strategy. However, its implementation hasn’t gone far yet. Increasing economical interweaving and better technological possibilities make Global Sourcing, even for middle-class companies more relevant than never before. Global Sourcing is more than just buying goods and services in foreign countries. In bounds of company philosophy, efficient strategies have to be developed to ensure international competitiveness. Extending of purchasing options, access to world-wide know-how or even increasing sales of own products are just some features of this concept.
Before integrating the Global Sourcing Concept in other company strategies a closer look is necessary. The focus of this term paper remains in showing Global Sourcing as a part of the reorientation of purchasing, determining its features and risks as well as indicating the strategy of Global Sourcing. For not going beyond the scope of this work, I will refrain from exact determination of every single sourcing strategy (Sourcing Toolbox). Even it’s not its task to set exact guidelines, concerning the integration into company’s strategies. Additionally this term paper mostly refers to the industrial view and just in part to the retailing sector.
Table of Contents
- 1. Introduction
- 2. Strategic Decisions of Supply Management
- 3. The Concept of Global Sourcing
- 3.1 Definition
- 3.2 Types of Sourcing
- 3.3 Relevance of Global Sourcing
- 3.4 Purchasing Concepts - Global Sourcing Portfolio
- 4. Different Types of Global Sourcing Organisations
- 4.1 Central Purchasing
- 4.2 Coordination
- 4.3 Outsourcing
- 5. Reflection of Global Sourcing
- 5.1 Chances
- 5.2 Risks
- 6. Conclusion
Objectives and Key Themes
This term paper aims to present Global Sourcing as a key element in the strategic reorientation of purchasing. It explores the characteristics and risks associated with Global Sourcing and outlines its strategic implementation. The paper focuses primarily on the industrial sector, with some consideration given to the retail sector. Due to scope limitations, a comprehensive analysis of every sourcing strategy is not undertaken.
- The strategic importance of Global Sourcing in a competitive global market.
- Different types of Global Sourcing organizations and their respective advantages and disadvantages.
- The definition and various types of sourcing strategies within a Global Sourcing framework.
- The opportunities and risks associated with implementing a Global Sourcing strategy.
- The integration of Global Sourcing into broader company strategies.
Chapter Summaries
1. Introduction: The introduction sets the stage by highlighting the increasing globalization of markets and the resulting intensified competition. It emphasizes the need for cost-saving measures and strategic reorientation in business planning, specifically within supply chain management and outsourcing. The paper positions Global Sourcing as a critical response to these challenges, advocating for a global perspective not just in sales but also in logistics and procurement. It underscores that Global Sourcing involves more than simply purchasing goods abroad; it necessitates the development of efficient strategies aligned with company philosophy to maintain international competitiveness. The introduction clearly defines the scope of the paper, focusing on Global Sourcing as a part of purchasing reorientation, identifying its features and risks, and indicating its strategic approach. It explicitly states its limitations, avoiding a detailed exploration of every single sourcing strategy and refraining from providing exact integration guidelines for company strategies. The paper primarily addresses the industrial sector with limited consideration given to the retail sector.
2. Strategic Decisions of Supply Management: [This section's content is not available in the provided text and therefore cannot be summarized.]
3. The Concept of Global Sourcing: This chapter delves into the core concept of Global Sourcing. It begins with a clear definition, differentiating it from simply buying goods from foreign countries. The chapter then explores various types of sourcing strategies available within the Global Sourcing framework. It highlights the growing relevance of Global Sourcing, particularly for mid-sized companies, enabled by increased economic interconnectedness and advanced technologies. The chapter likely discusses the benefits of Global Sourcing, such as broadened purchasing options, access to global expertise, and enhanced sales opportunities for the company's own products. A significant part of the chapter probably focuses on the Global Sourcing portfolio, a crucial tool for managing different sourcing options strategically and efficiently within a global context.
4. Different Types of Global Sourcing Organisations: This chapter analyzes the organizational structures employed in Global Sourcing. It likely examines different models, such as centralized purchasing, coordinated purchasing, and outsourcing, comparing their strengths and weaknesses. The discussion probably includes factors influencing the selection of the most suitable organizational model based on company size, industry, and specific needs. Each organizational model's implications for efficiency, control, and risk management are likely analyzed in detail.
5. Reflection of Global Sourcing: This chapter focuses on the opportunities and risks associated with implementing a Global Sourcing strategy. The "Chances" section likely explores the benefits previously mentioned (cost savings, access to specialized skills and resources, market expansion) with specific examples. Conversely, the "Risks" section will likely cover potential challenges, such as supply chain disruptions, quality control issues, currency fluctuations, political and economic instability in source countries, cultural differences, and ethical considerations. The chapter probably weighs the pros and cons to provide a balanced perspective on the potential outcomes of adopting Global Sourcing.
Keywords
Global Sourcing, Supply Chain Management, Purchasing Strategy, Outsourcing, Cost Savings, International Competitiveness, Sourcing Portfolio, Organizational Structures, Risk Management, Globalisation.
Global Sourcing: A Comprehensive Language Preview - FAQ
What is the purpose of this document?
This document provides a comprehensive preview of a term paper on Global Sourcing. It includes the table of contents, objectives and key themes, chapter summaries, and keywords. The information is intended for academic use and analysis.
What topics are covered in the term paper?
The term paper explores Global Sourcing as a key element in the strategic reorientation of purchasing. It examines the characteristics and risks associated with Global Sourcing and outlines its strategic implementation, primarily focusing on the industrial sector with some consideration of the retail sector.
What are the key themes of the term paper?
Key themes include the strategic importance of Global Sourcing in a competitive global market; different types of Global Sourcing organizations and their advantages and disadvantages; various sourcing strategies within a Global Sourcing framework; the opportunities and risks of implementing a Global Sourcing strategy; and the integration of Global Sourcing into broader company strategies.
What are the main chapters of the term paper?
The term paper consists of six chapters: 1. Introduction, 2. Strategic Decisions of Supply Management, 3. The Concept of Global Sourcing, 4. Different Types of Global Sourcing Organizations, 5. Reflection of Global Sourcing (including chances and risks), and 6. Conclusion.
What is the focus of Chapter 3: The Concept of Global Sourcing?
This chapter defines Global Sourcing, differentiating it from simply buying goods abroad. It explores various sourcing strategies, highlights the relevance of Global Sourcing, and likely discusses the Global Sourcing portfolio as a tool for strategic management of sourcing options.
What does Chapter 4 cover?
Chapter 4 analyzes different organizational structures used in Global Sourcing, such as centralized purchasing, coordinated purchasing, and outsourcing, comparing their strengths and weaknesses and considering factors influencing the choice of model.
What are the key opportunities and risks discussed in Chapter 5?
Chapter 5 examines the opportunities (cost savings, access to specialized skills, market expansion) and risks (supply chain disruptions, quality control issues, currency fluctuations, political instability, cultural differences, ethical considerations) associated with Global Sourcing.
What are the keywords associated with this term paper?
Keywords include Global Sourcing, Supply Chain Management, Purchasing Strategy, Outsourcing, Cost Savings, International Competitiveness, Sourcing Portfolio, Organizational Structures, Risk Management, and Globalization.
Is every aspect of sourcing strategy covered comprehensively?
No, due to scope limitations, the term paper does not provide a comprehensive analysis of every sourcing strategy or detailed integration guidelines for company strategies. It primarily focuses on the industrial sector with limited consideration given to the retail sector.
What is the overall approach of the term paper?
The term paper adopts a strategic approach, emphasizing the importance of Global Sourcing for maintaining international competitiveness and advocating for its integration into broader company strategies.
- Quote paper
- Wolfgang Schneid (Author), 2004, Global Sourcing - The strategic reorientation of purchasing, Munich, GRIN Verlag, https://www.grin.com/document/54024
