09_Global_sourcing - & &- 7...

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- 1 - Global Sourcing
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- 2 - Global Sourcing U.S. Trading Partners (2009) Importance of Global Sourcing for Company Success http://www.census.gov/indicator/www/ustrade.html http://www.census.gov/foreign-trade/statistics/highlights/top/top1106yr.html
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- 3 - Global Sourcing is on the Rise Level I Level II Level III Level IV Level V Only domestic purchasing International purchasing as needed International purchasing part of sourcing strategy Integration of global sourcing activities across worldwide locations Integration of global sourcing activities w/ other functional groups Current 8.4% 20.1% 18.8% 22.7% 29.9% Future 5.9% 6.5% 7.8% 20.9% 58.8% Exp. Δ -30% -68% -59% -8% +97% Source: Aberdeen Research, 2005 Source: CAPS Research, 2006
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- 4 - Let’s take a step back… What are motivations for and benefits of global sourcing? What are barriers and challenges to global sourcing?
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- 5 - International Purchasing Offices Source: CAPS Research Study, 2005
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- 6 - Global Sourcing Third-party support
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Unformatted text preview: & &- 7 -Crucial Building Blocks Source: CAPS Research, 2006- 8 -Global Sourcing Trends Expand worldwide search Supplier development Total cost/value decision making Risk mitigation Functional integration Establishment of linkages with thought leaders Locate sourcing leadership close to sources of supply- 9 -Insight into Strategic Outsourcing Engagements: Results from an ongoing Research Study Contract Flexibility Communication structure Top management support Benchmarking Cooperative norms Information Exchange Failure Prevention Performance Enhancing pe p Process integration IT integration 0.482*** (0.079) R 0.673* (0.050) R 2 : 0.431 R 2 : 0.120 Moderator Low cost co Manufactur Contract typ Controls Outsourc Business Asset Sp cing ion ity ng ion R 2 : 0.108 R 2 : 0.051 R 2 : 0.127 R 2 : 0.119 R 2 : 0.056 R 2 : 0.037 R 2 : 0.076 R 2 : 0.042 model 1...
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This note was uploaded on 12/29/2011 for the course SCM 371 taught by Professor Tobias during the Fall '11 term at Michigan State University.

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09_Global_sourcing - & &- 7...

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