Global Strategic Sourcing Tools
PurchTips - Edition #157
By Charles Dominick, SPSM
Is Your Global Strategic Sourcing Toolbox Stocked?
Because of the differences between domestic and global strategic sourcing, you need the right skills, knowledge, and tools to successfully source globally. Here are five of the most important global strategic sourcing tools.
- A Business Case. Many company executives need to be convinced that global strategic sourcing is a smart move. A business case documenting the researched savings potential is a tool for convincing them. "Let's say that you get an answer of $30,000 savings," says Dick Locke, author of the book Global Supply Management. "Is that something your company can afford to walk away from?" Only after management reviews a well-written business case can that type of question be answered.
- An INCOTERMS Chart. INCOTERMS "define the responsibility for the buyer and seller in terms of handling and paying for customs and shipping," according to Locke. "They also define where the risk of loss transfers between the seller and the buyer." There are 13 INCOTERMS which differ from the F.O.B. terms used domestically in the USA.
- A Transportation Time Chart. The proximity of suppliers influences transportation times, which influences your inventory strategy. Always know your transportation times.
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Spotlight On Professional Development Opportunities
Global sourcing may be one of the most complex activities you'll encounter as a purchasing professional. Despite its challenges, purchasing professionals do succeed at global sourcing when they know all of the detailed tactics involved. Our new online course "Executing A Global Sourcing Strategy" will teach you how to take global sourcing from a concept to a successful reality!
Learn more about "Executing A Global Sourcing Strategy" at:
The Latest Purchasing News!
- Purchasing Managers/Directors: Are you struggling to develop a plan for improving your team's performance? If so, visit: www.NextLevelPurchasing.com/benchmark
- Considering a career move? Since the last edition of PurchTips, at least six new jobs preferring candidates with the SPSM® Certification have been posted at:
Want to learn more about today's topic? Then check out my podcast interview with Dick Locke! Podcasts are audio files that you can listen to on your PC, download to your iPod/MP3 player, or burn to CD.
It's absolutely FREE to download the audio. So why not add to your collection of great purchasing education material?