CAPS Releases Study on Global Sourcing
Supply Chain Management Review staff -- Supply Chain Management Review, 11/28/2006
The drive to source globally is not slowing down; it is only increasing. The question then for companies is: How can they coordinate their global sourcing and supply activities?
Drawing from an e-survey of 167 executives and field research from 16 companies, CAPS researchers Robert Monczka, Robert Trent, and Kenneth J. Peterson describe the current sourcing environment and offer a prescriptive model for global sourcing and supply. The results of this research are captured in the 99-page CAPS Research report, "Effective Global Sourcing and Supply for Superior Results."
According to the report, companies need to possess eight key factors in order to achieve positive global sourcing performance:
- A defined global sourcing process.
- Centrally coordinated/centrally led decision making.
- Site-based control of operational activities.
- Information sharing with suppliers.
- Real-time communication tools.
- Availability of critical resources.
- Global sourcing and contracting systems.
- Support from an international purchasing office. The research also identifies strategic trends that are critical to achieving superior result. These include:
- Expanding worldwide search to include all countries and regions with low-cost labor.
- Developing suppliers in these regions by helping them apply such things as lean processes.
- Assessing the total cost/value when evaluating and selecting suppliers.
- Identifying critical risk areas and putting mitigation strategies in place.
- Developing worldwide leading-edge category strategies.
View All Blogs
