Supply and Demand Chain Executive has recently picked up its coverage of global sourcing topics. Much of this recent coverage has really hit the mark. For example, a recent guest submission by John Brockwell of JP Morgan Chase questions whether global sourcing is really worth it anymore. In my view, this a fair question for US companies in today's environment owing to concerns over product safety and declining -- or lost -- savings from the troubled dollar. Brockwell suggests that there are many reasons to still consider global sources ranging from "access to fresh research, design or specialized intellectual capital" or "plans to sell or service locally."
Even more important than the rationale for global sourcing, he offers up a decision process that executives should ask themselves about whether a specific global sourcing decision makes sense. While much of what he has to say will be news only to those getting started with global sourcing, the advice is valuable indeed. But is Brockwell accurate in his analysis? For the most part, I believe that much of what he has to say could have saved many companies from poor global sourcing decisions had they followed the advice in the article in the first place. Check out the piece for yourself and decide for yourself. It's more than worth a few minutes of your time.
- Jason Busch