The Role of International Contract Management in Global Markets

1. Introduction

Purchasing products and services of foreign origin can be extraordinarily challenging. At the same time, many new issues must be addressed if a sourcing team is to ensure that its organization receives the right quality, in the right quantity, on time, with the right services, at the right price.

In recent years, the term "foreign sourcing" has largely been replaced with "international sourcing": the process of purchasing from suppliers outside of the firm's country of manufacture. At a number of leading firms, international sourcing is being replaced with a broader international approach called "global sourcing." Professor Monczka and Trent define global sourcing as "the integration and coordination of the requirements across worldwide business units, looking at common items, processes, technologies, and suppliers."1

In order for the purchaser to buy internationally, a contract had got to be concluded first, so as to ensure the benefits of both parties. And international contract are more complex as compare to local contract. Therefore in this assignment, we shall discuss the importance of international contract and its own complexity.

----------------------------------------------------------------------------------------------------

--------

Robert M. Monczka and Robert J. Trent, "Global Sourcing : A Development Approach," International Journal of Purchasing and Materials Management, Spring 1991, p.3.

Why Purchase International Goods and Services?

International sourcing requires additional efforts when compared with domestic sourcing, but it can yield large rewards. One of the complexities of buying goods and services of foreign origin is the wi...

... middle of paper ...

...fluenced by historical incidents or unfounded prejudice.

Bibliography

Robert M. Monczka and Robert J. Trent, "Global Sourcing: A Development Approach," International Journal of Purchasing and Materials Management, Spring 1991, p.3.

Dick Locke, "Get the Purchasing Channel You Want," Electronics Components, October 1993, p.U-12.

Donald W. Dobler, "Purchasing and Supply Management," Text and Cases, Sixth Edition, 1996.

Michiel R. Leenders, D.B.A., PMAC Fellow, "Purchasing and Supply Management", Eleventh Edition, Irwin McGraw-Hill.

C. Chatterjee, "Negotiating Techniques in International Commercial Contracts", Ashgate

Steven M. Bragg, " Outsourcing, A guide to... Selecting the correct Business Unit... Negotiating the contract... Maintaining control of the process", 1998

P.J.H. Baily, " Purchasing and Supply Chain Management", Fifth Edition