13-09-2014, 09:51 AM
Global Sourcing
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Definitions of Global Sourcing
Global sourcing is defined as the process of identifying, developing, and utilizing the best source of supply for the enterprise, regardless of location
GLOBAL SOURCING: ON THE RISE
There is no disputing that global sourcing is on the rise
the U.S. alone imported more than $1.3 trillion worth of goods and services in 2001
most companies report a 10% to 35% cost savings by sourcing from low-cost-country suppliers
But what exactly does global sourcing entail?
But what exactly does global sourcing entail?
Every sourcing decision requires companies to balance the tradeoffs of cost, performance, and risk. However, these factors are heightened when sourcing globally because of the variability of non-price or "hidden" cost factors such as cross-border freight and handling fees, complex inventory stocking and handling requirements, and a multitude of documentation and regulatory compliance requirements.
Sourcing Plans - APCC
American Power Conversion Corporation, the US-based leading provider of global, end-to-end availability enhancement solutions, has drawn up a blueprint to turn its Indian manufacturing facility in Bangalore into a global sourcing centre for catering to its principals in the fastest growing Asia-Pacific region.
Though the wholly-owned Indian subsidiary is the third of its kind in the region, with the other two located in China and the Philippines, the parent company is already sourcing 60 per cent of Bangalore plant's production for its global requirements, thanks to the low-cost but high-value advantages the facility offers.