Designing a Global Sourcing Program

I enjoyed reading Jeremy Sacker’s column on "Making Global Sourcing Work" in Supply and Demand Chain Executive. While Sacker takes a retailer's perspective on China and global sourcing for much of the article, a good amount of his advice is relevant across industry. For example, Sacker suggests that from "the outset, a company needs to define why it wants to adopt global sourcing. If the company's primary objective is to reduce costs, a very different approach will be needed than if the aim is to improve speed of delivery of product to market. If cutting costs is the only factor, don't waste time, effort and energy in defining a lengthy global sourcing strategy; look no further than reverse auctions or request for quotes (RFQs). However, if the main goal is differentiation from the competition, consolidation of supply sources, or the increase of the product portfolio offering to customers, then it is important to take global sourcing seriously and plan accordingly. Whatever the identified objectives, they will define strategy."

Jason Busch

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