Global Sourcing: Myth or Reality?

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SUCCESS IN GLOBAL SOURCING: MYTH OR REALITY? PROF. DR KAI Ines MALLET – EBS BUSINESS SCHOOL

Table of contents

1) Introduction

1.1 Problem definition and objectives 1.2 Course of investigation

p2 p3

2) Global sourcing as a required part of a successful manufacturing strategy

2.1 Thanks to the advantages it provides 2.2 Included in a manufacturing strategy 2.3 Case of Zara: a successful combined procurement strategy

p4 p5 p5

3) Global sourcing success subject to risks and illusions

3.1 Risks associated with global sourcing

p6

3.2 The myth of many firms blocked at intermediate levels of global sourcing 7 3.3 Case of China sourcing: a dream that could turn into a nightmare p9

4) Global sourcing success variables

4.1 Its organisation 4.2 Key elements to achieve excellence in global sourcing 4.2.1 Monczka and Trent model 4.2.2 Other literature insights

p10 p11 p11 p13

5) Conclusion 6) References

p14 p15

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1) Introduction

1.1 Problem definition and objectives

While talking about Chinese sourcing, Michael Matteo, senior vice president, sourcing and operations, at ThreeSixty Sourcing Inc., which provides global sourcing services in China, stated that: “The first myth is “Sourcing is easy”” and then, kept on by telling that sourcing decisions “require a thorough process of due diligence.” What was hidden behind these quotations?...