Global Sourcing And Global Supply Management - 1542 Words

Global sourcing and global supply management are both very important concepts in global supply chain management. Global sourcing, on the one hand, is the process of procurement or obtaining much cheaper goods and services from foreign to domestic markets. Global supply management, on the other hand, can fit a narrative of implementation, maintenance, and control of strategic processes of buying, including outsourcing from low-cost countries. Many companies and international organizations today conform to such strategies to reduce total costs, gain a competitive edge over their competitors in the same marketplace, increased their organization’s profitability, meeting and exceeding shareholders’ annual returns and more importantly steadily optimizing customer’s satisfaction. In today’s international business environment, the world is seen as a global village where goods and services flow across geographical boundaries and territories for the common purpose of providing high-quality supplies to domestic and foreign markets at a lower price to satisfy today’s ever increasing demand for quality products and services. Here are some major forces that have made global sourcing and global supply management a reality for many contemporary businesses and industries. Some of these factors can be traced back from historical factors, technological changes, free trade agreements between countries, an increase in global competition and low cost of sourcing to mention a few. HistoricalShow MoreRelatedW1a Introduction1481 Words   |  6 PagesWhat is purchasing? MS6323 Strategic Sourcing and Procurement KK Lam Week 1a Summer 2015 2 What is purchasing? Or Part of Supply Chain (Manufacturing) Perspectives on purchasing 1 As a function – To perform specialised tasks 2 As a process – To achieve an output 3 As a link in the supply chain 4 As a relationship 5 As a discipline – Knowledge based 6 As a profession – Demonstrable skills and knowledge – With production and warehousing – Internal and external focus 3 SCM activitiesRead MoreThe Reluctant Receptionit1547 Words   |  7 Pagesgoods from the point of origin to the point of usage.  International logistics  involves the management of these resources in a companys supply chain across at least one international border. Conceptual Framework It may sound complicated, but logistics is basically the management of stuff, and information regarding the stuff, from one place to another until it reaches the consumer. 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Thomas Friedman said: â€Å"supply chaining† is fundamental as barriers to trade and interdependence are reduced across the globe.† That pretty much means that every day proper logistics are more fundamental to business to succeed and prosper. Fundamental changes across many areas of business, politics and the supply chain haveRead MoreStrategic Sourcing Of A Supply Chain Management1271 Words   |  6 PagesResponsible Sourcing Before a supply chain manager can truly understand strategic sourcing, they must have a good working knowledge of the purchasing and procurement processes, which I will explain in detail later in my research. Strategic sourcing is an aspect of supply chain management that is becoming more prevalent in the business world. Without strategic sourcing a firm will not and cannot maximize the potential of its supply chain and altogether meet the company’s overall business goalsRead MoreSuperior Supply Chain Management Of Li And Fung Ltd1052 Words   |  5 PagesSuperior supply chain management in Li and Fung Ltd Li and Fung Ltd are a global supply chain management business based in Hong Kong. They are the world’s leading consumer goods sourcing and logistics company. Li and Fung Ltd have 5 steps they follow to be successful leaders in their field. These steps are, ‘We collaborate’ with our customers to meet their individual needs. ‘We Innovate’ and develop products and customize services for our customers. ‘We source’ our great products from supplies all aroundRead MoreGeneral Motors Supply Chain Essay1574 Words   |  7 Pagesinherent with the automotive supply chain including: risk, visibility, inventory management, cost containment, customer demands and globalization. GM currently expects its suppliers to adopt a lean philosophy to ensure it becomes the low-cost producer of quality products. It employs Just-in-Time (JIT) manufacturing and utilizes distribution strategies including maintenance of regional distribution facilities and third party management of logistics. [1] An efficient supply chain is no longer capable