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Global Supply management (Potential problems areas: (15) (Expediting,…
Global Supply management
Reasons for global purchasing:
Better value is perceived to be available from international source than from domestic one.
Factors that makes international buy look attractive may vary:
Specific reasons that may cause an offshore supplier to be selected:
Competitive clout
Tie-in with offshore suppliers
Marketing tool: Specific $ to be purchased from suppliers in other countries.
Better
Government pressures and
4) International suppler may be concentrating on certain products, pricing export products at particularly attractive levels
3)Equipment process used
2)Exchange rate
1) Labor costs for manufacturing
Potential problems areas: (15)
Expediting
Political, labor & security problems
Quality
& Claims
Tariffs & duties
Cultural & social customs
Ethics & resposibility
Selecting and managing offshore suppliers
Global commodity management organization
International purchasing
Intermediaries
Import brokers & agents
Import merchant
Subsidiary
Trading company
Information sources for locating & evaluating offshore suppliers
Government sources
Supply chain partners
Importers & foreign trade brokers
Supply department
Tools for global supply
Countertrade
SWAPS
Offset Arrangements
Foreign trade zones
Bonded warehouses
Regional trade agreements
