Excellence in Global Sourcing
What is the main difference between global sourcing and international purchasing?
Global Sourcing is about developing a coherent strategy
Define a supply network.
A supply network is a cluster of suppliers that assist a business in adding value for customers by manufacturing and delivering products.
List the seven critical characteristics of successful global sourcing organizations.
What are the two main dimensions that differentiate supply network types?
Degree of focal influence and dynamic/routinized environment.
What is executive commitment?
senior executives ensuring the sourcing process
In a routinized supply network, companies focus on improving which type of innovation?
Process innovation
Describe two specific challenges that companies might face when transitioning from international purchasing to global sourcing.
Coordinating across locations
Resources requirements
Define a dynamic supply network.
High variety or low volumes, high number of competitors, and high frequency of new products in the market
Explain level 2 in the 5 Level Model
International purchasing only as needed
What are the two aspects that routinized networks are most concerned with maintaining in their operations?
Cost efficiency and quality
What are the key steps to advance from Level III to Level IV?
establishment of global coordination mechanism, investment in IT and and creation of standardized processes
What are the two networking activities that are especially important in dynamic networks?
Knowledge capture and human resource integration