Purchasing and Supply Chain Management
6th Edition
ISBN: 9781285869681
Author: Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher: Cengage Learning
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Question
Chapter 10, Problem 2DQ
Summary Introduction
To explain: The problems in outsourcing from low-cost countries.
Worldwide sourcing:
It is the seeking of goods and services beyond the borders of a region. It the process where organizations look for the most cost-efficient place globally to manufacture their goods. Most organizations choose a global sourcing strategy as the costs are usually lower abroad.
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Foreign vendors are added to a company's supply chain for a variety of reasons. However, the fundamental motivation for utilising an international provider is because that source is thought to offer better value than a domestic supplier. Explain ANY FOUR (4) reasons for global sourcing.
Explain what is risk in internationally sourcing ?
Explain the six challenges organizations in international sourcing (with a short explaining each challenge).
Chapter 10 Solutions
Purchasing and Supply Chain Management
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Similar questions
- Many companies have moved to worldwide sourcing on a reactive rather than proactive basis. What does this mean and what are the consequences?arrow_forwardImpact sourcing, also called smart sourcing, was developed to provide opportunities for workers in less-developed countries. Explain how and for what specific purposes impact sourcing can be used in developed countries.arrow_forwardWhy do firms purchase from foreign suppliers? What are the risks involved in global sourcing?arrow_forward
- Foreign vendors are added to a company's supply chain for a variety of reasons. However, the fundamental motivation for utilising an international provider is because that source is thought to offer better value than a domestic supplier. Explain ANY FOUR reasons for global sourcing and make reference to the attachmentarrow_forwardDescribe what is the risk in international sourcing with the help of examples ?arrow_forwardWhy International Supply Chains are much more complex than simple domestic supply chains? List four reasons why purchasing from an international supplier makes the process more complex.arrow_forward
- With the growing complexity of managing worldwide supply chains, coupled with significant pressures to reduce cost at the firm level, supply managers must learn to manage the inherent risks of global sourcing effectively and efficiently. Where is the supply chain organization vulnerable to potential risk? Identify at least four risks. Why is the organization vulnerable? How will this risk affect the organization if it happens? How will this risk affect the organization’s customers and suppliers? What are the causes of the risk?arrow_forwardWrite short notes on “risk in international sourcing” using practical examples of industry or literature.arrow_forwardWhat Is Barriers to Worldwide Sourcing?arrow_forward
- React to these statements: Discuss the advantages and disadvantages of sourcing a product's raw materials in the local market versus the global market. How does this decision affect the final quality of the product manufactured by the company? Analyzes the factors of outsourcing and carrying out the necessary processes that benefit the company. What controls should a company establish to prevent the outsourcing process from affecting the quality of the final product?arrow_forwardRecognize the main factors that contribute to effective global sourcing activities.arrow_forward
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