Global Sourcing Case Study

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Introduction:
In today’s competitive advantage firms which excel have to go achieve cost reduction, quality and delivery improvement, cycle time reduction, improved customer service and competitions from the market. As the organizations are looking for new ways to achieve competitive advantage and development global strategies and approaches become an attractive option. Many of the world top companies are going for the global sourcing strategies in order to reduce cost and in order to improve the performance of their global supply chains.
Supplier involvement has been an important development in global sourcing and as a focus on core competence within the organizations. Outsourcing has been used for the products within the companies where purchasing had the major role of ordering …show more content…

Tariffs, quotas, documentations for cross-border process and various kinds of international bills makes global sourcing a difficult challenge. Governments charge tariffs and quotas to earn revenue and to make foreign goods expensive to protect national interest. Another example of governments efforts to protect national interests are imposing several restrictions and trade bills. Cross-border procedures like customs duty impose heavy restrictions on international trade. Foreign exchange rates and currency fluctuations also pose a different set of problems. The maor challenges also depends on the firm’s managerial and demographic characteristics. US firms which procure products from Germany will be less worried about cultural difference than from those who source from Japan ( Czinkota and Ronkainen ,1993). And also US firms procuring products from Europe and Canada will be less worries about logistics than those buying from East Asia due to physical distances ( Monczka and Giunipero

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