Risks and Levels of emerging market sourcing

Levels and Risks of Emerging Market Sourcing By http://www.dragonsourcing.com/

What is Emerging Market Sourcing ?

 Emerging market sourcing

helps you to do

business with more profits.

 The countries always have large territories and population.  Countries falling under emerging markets lead to faster growth and expand trade.

 Some of the emerging market countries are : India,China,Brazil and Russia.

Levels and risks of Emerging Market Sourcing Emerging markets are those countries where previously untapped potential for US exports might be anticipated. Nations falling under this banner are mostly developing countries. Therefore in order to source in these countries the levels and risks might be understood.

Issues that management must be aware when it comes to global sourcing include : ďƒ˜ Global sourcing vs. Global procurement. ďƒ˜ Levels of Global sourcing. ďƒ˜ Risks.

Global sourcing vs. Global procurement

Global Sourcing

It is very complex in nature

Global Procurement

It is very simple in nature

Full involvement of the company Little involvement of the company supplying the product supplying the product.

It is an independent process.

It is a function of global sourcing.

Here the products are imported Here the products are imported for sale in various countries. for sale within the country.

Levels of Global sourcing

It is very important to know where your organization stands in terms of global network. From this levels you will be able to know how much improvement your company can achieve. There are five different levels of purchasing.

ďƒ˜ Level 1 : Identified by domestic purchases only. ďƒ˜ Level 2: Described by purchases as on a needed basis. ďƒ˜ Level 3 : Represents a shift in sourcing strategy to include purchasing.

Risks

 One needs to identify the hurdles that can affect the quick supply of the product.  It is also to be checked that the outsourcing advisor is properly guiding the organization through the sourcing process.  It is to checked that your supplier is giving you the product in lower prices.

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