STAGES OF GLOBAL SOURCING

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WHAT ARE THEY?

INTRODUCTIONSuccess in global sourcing requires the know-how on international trade laws, culture and

language barriers, global economy and logistics.

LET'S GET STARTED

Investigation& Research

Define the objectives and goals of your business,the market you need to target and the position ofyour brand in the global market.

Purpose

Identify the operational activities of your business,the requirements of the market and yourcompetitors.

Key Activities

A procurement process plan created during thisstage can help you delineate the parameter formeasuring performance and the initial strategy ofwork.

Work Products

EvaluateMarket &Supplier

Create sourcing strategy that meets the finalcosting model.

Purpose

Create the parameters depending, on which it isgoing to take to help you find suppliers. (Tip: Usinga sourcing agency can offer you tips fordetermining the parameters.) Estimate economicand operational advantages of the sourcingprocedure.

Key Activities

Prepare supplier list. Request for Information(RFI) document is created and sent to thesuppliers.

Work Products

Choose theRightSupplier

Initiate negotiation process with the finalsuppliers.

Purpose

A final list of suppliers is prepared by yoursourcing team with the help of the sourcing agencydepending upon the response from the RFI.(Suppliers who do not respond to the RFI isdeleted from the suppliers list.) Inform thesuppliers about the time, within which they haveto deliver the products.

Key Activities

Selection of suppliers with adequate savings.Work Products

Implementthe sourcingprocess

Assemble the implementation team. Publish thestrategy and schedule of work.

Purpose

Performance analysis schedule is created thatstates all the activities that you are going toundertake while implementing the sourcingprocess.

Key Activities

Resources, shared supply and logisticalarrangements plan. Documentation of tentativeexternal and internal results from suppliers. (Tip:Ask sourcing agency for regular performancemeasurement reports.)

Work Products

Monitoringtheperformance

Understand the extent of communication withsuppliers. Maintain an efficient global sourcingprocess.

Purpose

Measure the performance of the suppliers in termsof the procedures and resources used by suppliers.Resolve any problem in the collaboration effortsbetween your organization and the supplier.

Key Activities

Updated procurement procedure as per thechanging needs of the market and your clients.

Work Products

Conclusion

The success of global sourcingprojects rely on careful attention tothe selection of suppliers,development of proper documentationand procedures, and targeting thebest countries to meet the objectivesof your organization.

Good luck on your journey todeveloping World-class sourcingstrategy for yourself and yourorganization.

COPYRIGHT © 2016 GOSOURCING. ALL RIGHTS RESERVED