Global Sourcing - Influence on Supply Chains

GLOBAL SOURCING

INFLUENCE ON SUPPLY CHAINS

In today's world, to remain in business and handle all the dynamics and challenges, businesses have to incessantly come up with competitive strategies to leverage their operations.

One way to gain a competitive advantage is through efficient supply chain management.

Majority of the organizations are now embracing global sourcing because of its numerous advantages and to tap the efficiencies that come with it.

Global Sourcing

IMPACT OF GLOBAL SOURCING ON SUPPLY CHAINS Global Sourcing

With the growing popularity of global sourcing worldwide, many supply chains are adopting this concept at a increasing rate.

Global sourcing has had a significant influence on various strategic decisions and policies.

Global Sourcing

Policies Influenced by Global Sourcing

GLOBAL SOURCING AFFECTS INVENTORY MANAGEMENT

Inventory Management Policies

DECISIONS DIRECTLY The time to procure globally sourced materials is usually long and uncertain because of which holding more inventory is required. Therefore, when adopting global sourcing, companies might have to adjust their inventory management policy.

Global Sourcing

To realize the full benefits of global sourcing, organizations are now implementing business

Business Process Offshoring (BPO) Decisions

process offshoring.

At times, in local markets, companies get labour & raw material that are expensive, of low quality & sometimes not available at all. This has pushed firms to outsource from global markets which is sometimes self-defeating as the costs are again driven up by other hidden costs. BPO enables companies across a range of industries to lower costs of operations & explore different opportunities & markets. Global sourcing influences what function to offshore and your offshoring destination.

Global Sourcing

COMPANIES ARE REQUIRED TO ADJUST THEIR SUPPLIER

Supplier Selection Policies

SELECTION CRITERIA WHEN IMPLEMENTING GLOBAL SOURCING TO HANDLE VARIOUS COMPLEXITIES. An already complex process, supplier selection becomes even more complicated when dealing with suppliers from across the globe.

Analyzing bids from global suppliers is not the same as that from local suppliers.

Global Sourcing

GLOBAL SOURCING EXPOSES A

Risk Management Policies

COMPANY TO VARIOUS NEW RISKS & IT IS NECESSARY TO KNOW HOW TO MITIGATE THOSE. A thorough risk evaluation of the company's risk management policy is manadatory to gauge how prepared we are to mitigate any risk.

Global Sourcing

GLOBAL SOURCING

-the cornerstone of the total production costs for the organization, which in turn informs the profitability and competitiveness of the business.

Along with the numerous positive influences, if the negative influences are dealt with carefully, they can turn out positive and instrumental to the overall business performance.

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Global Sourcing

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Global Sourcing