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Global context (Offshoring (Domestic sourcing (When companies start up…
Global context
Offshoring
Domestic sourcing
When companies start up they often tend to source locally, where possible, for ease of control and lack of complexity. There is no active sourcing from offshore suppliers and any goods made abroad are often purchased indirectly through intermediaries to reduce the risks and administration.
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Global sourcing networks
Companies can develop collaborative supply networks where each element of the supply chain works towards a common goal to supply a market. (This will be discussed in the next session.) In these cases manufacturers and suppliers work together to establish an entire supply chain outside of the home country.
Operations networks
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Regional operations
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Sometimes offers a good balance between the ability to serve local markets and the logistics costs of transporting goods
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Factors that have allowed operations to become global as part of the general trend toward the internationalisation of business
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