Globalization has encouraged buyers to find the right supplier, regardless of where in the world that supplier is located. This video explains why companies source worldwide and also lists some key enablers for success in global sourcing—most importantly, the consideration of total costs.
- We hear a lot today about globalization … and how the world is getting smaller and smaller. … Everyone seems to have their own perspective … on what this means to them and to their business. … I like Jack Welch's perspective, … he was CEO of General Electric for many years. … Jack defined globalization as the ability to sell products … and buy needed goods anywhere in the world. … And equally important, to find talented and capable people … for his company from all around the world. … From a purchasing perspective, globalization has pushed you … to seek the right supplier, … regardless of where that supplier is located. … Gone are the days when a company is simply sourced … from the supplier down the street. … It is much more competitive than that. … First and foremost, you are looking for the best price. … Worldwide Sourcing can also give you access … to the latest technology advances. … For example, many Asian countries lead … the world in electronics technology. … Sometimes a buyer will often use foreign suppliers …
- Explain the purchasing process.
- Define purchase order.
- Describe the intent of a purchasing policy.
- Distinguish types of purchasing structures.
- List the steps of selecting a supplier.
- Identify enablers for success in worldwide sourcing.
- Perform price and cost analysis.
- Measure supply management performance.