Global Sourcing Principles

Principles of Global Sourcing

By http://www.dragonsourcing.com/

What is Global Sourcing ?

ď ą Global sourcing is a strategy for business procurement in order to establish a location which has lower cost for a manufactured product.

ď ą Currently the companies focusing more on global markets. ď ą The moral of global sourcing is to find better supply of products that has lower cost.

Principles of Global Sourcing

 Best Total Value.  Supplier Incumbency  Honest, Ethical, and Fair Dealings

Best Total Value.

 Sourcing decisions are made based on the best total value.  Best total value is driven by business need.

 It includes a number of components that include total cost of ownership, quality of good.

Supplier Incumbency

 Stability must be bring in the supply base.  An ongoing relationship must be there with the supplier.  This factor is a higher value to the business.

Honest, Ethical, and Fair Dealings

 Suppliers must be treated with respect.  Also suppliers must be deal with honesty, ethically and fairly.  Buyers and suppliers must optimize their working relationship.

Dragon Sourcing Johannesburg 140 Highgate, Sunny Road, Lakefield, Benoni, 1500, Gauteng, South Africa Tel:+27 (83) 230-9342 Email: contact.south-africa@dragonsourcing.com