OM337_Session 11_09292011

OM337_Session 11_09292011 - Click to enter Subtitle...

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Unformatted text preview: Click to enter Subtitle information More Subtitle info OM 337.3 Procurement Procurement and Supplier Management Session 11 Chapter 10 29 September, 2011 OM 337.3 Procurement Chapter Overview Worldwide sourcing overview Progressing from domestic buying to international purchasing Progressing from international purchasing to global sourcing 22 OM 337.3 Procurement OM 337.3 Procurement Impact of Globalization Interdependence Connectivity Integration of economies Social Technical Political Outsourcing opportunities on the supply side Opportunities for new markets on demand side Issue of trade balances 33 OM 337.3 Procurement OM 337.3 Procurement Globalization Why Benefits Barriers Risks Definitions 44 OM 337.3 Procurement OM 337.3 Procurement Definitions International purchasing Relates to a commercial transaction between an buyer and a supplier in different countries Global sourcing Involves proactively integrating and coordinating common items and materials, processes, designs, technologies, and suppliers across worldwide purchasing, engineering, and operating locations 55 OM 337.3 Procurement OM 337.3 Procurement Overcoming Barriers Education and training Publicizing success stories Globally linked information systems Supplier providing U.S.-based support personnel Measurement and reward systems Use of third-party intermediaries 66 OM 337.3 Procurement OM 337.3 Procurement From Domestic to International No suitable domestic suppliers Competitors are gaining competitive advantage from overseas suppliers Triggering events in the supply market Information about worldwide sources Supplier selection issues Cultural understanding Language and communication differences Logistical issues 77 OM 337.3 Procurement OM 337.3 Procurement From Domestic to International Legal issues Countertrade requirements Costs associate with international purchasing Currency risk 88 OM 337.3 Procurement OM 337.3 Procurement Information about Worldwide Sources International industrial directories Trade shows Trading companies Third-party support Trade consulates 99 OM 337.3 Procurement OM 337.3 Procurement Supplier Selection Issues Same as other selection issues: Cost differentials and longevity Inventory requirementspipelines, etc. Technical and quality capabilities Design assistance, R&D Delivery, leadtimes Intellectual property Legal processes Payment terms Currency and exchange rate issues Alignment with strategy and corporate culture 10 OM 337.3 Procurement OM 337.3 Procurement Cultural Understanding Culture is the sum of all understandings that govern human interaction in a society Language Religion Values and attitudes Customs Social institutions Education 11 OM 337.3 Procurement OM 337.3 Procurement Values vs. BehaviorValues vs....
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This note was uploaded on 10/04/2011 for the course OM 337.3 taught by Professor Hasler during the Fall '11 term at University of Texas at Austin.

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OM337_Session 11_09292011 - Click to enter Subtitle...

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