Development Of A Global Sourcing Strategy Through Purchasing Portfolio Management

Studienarbeit aus dem Jahr 2013 im Fachbereich BWL - Unternehmensführung, Management, Organisation, , Sprache: Deutsch, Abstract: Ever since the introduction E-Business solutions in the late 1990 ́s markets have been evolving to more transparency and immediacy. Having the capability of comparing prices and lead times the global key costumer base also has become more demanding in terms of price, quality and availability. These changes have been increasing market pressure especially within the trading industry which often adds no or little value to the original product. The tool, machine, working equipment and service provider, the XYGroup, with its headquarters in Germany offers almost seventy thousand articles; from simple steel grinding tools to high-complexity industry working equipment solutions. The products are mostly delivered from the German headquarters to the subsidiaries. The company has been operating since 1910. In 2012 Z ́s sales aomunted roughly to 100 million €. One of the 15 subsidiaries within XYis XY CHINA is situated in the directly governed municipality CHINA. The subsidiary was founded in 2002. In 2012 it accounted for 4% of total XYsales. The location (City in China) was chosen because it provides a mature infrastructure including a harbor and a convenient highway connection to Beijing. In 2012 CHINA has reported Gross Domestic Product per capita of 91,180.6 RMB which was the highest GDP per capita of all Chinese cities. Furthermore CHINA ́s real GDP had the highest growth rate of all Chinese cities, 13,8% in 2012. Key accounts are leading automotive as well as aircraft manufacturers. Due to the financial crash in 2008 and its aftermath sales declines in consumer as well as professional markets. Competition within the tool and machine industry has ever since become fierce and the subsidiary struggles with different internal as well as external factors. One of the indicators for the accentuation of competition within the Chinese market is the subsidiary ́s increasingly growing “Outsource Procurement Quota“. This quota states the amount of goods not being ordered from the headquarters in Germany but locally in China or in other countries from external suppliers. What might be the reason the purchasing managers currently source an increasing number of goods locally or in other countries instead of sourcing from their mother company that states to provide reliable conditions and quality?

Gerhard Trautmann explains the relationship between global sourcing strategy and organization design.

This selection discusses global sourcing and explores strategies for locating, qualifying, and employing suppliers that add maximum value to your business. Discover profit-boosting opportunities specific to your market environment by following Sollish's clear steps for analyzing and implementing a strategic sourcing plan. Other topics covered include investigating sourcing opportunities, co-sourcing and strategic alliances, and reducing supply risk.

The latest best practice guidance on all aspects of global strategic sourcing-including environmental and international issues Strategic Global Sourcing Best Practices covers the latest trends and leading edge processes in global strategic sourcing, including supply management, t, sustainability, financial decisions, risk management, and international strategies. Offers the latest trends and guidance for sourcing and supply managers Features coverage of understanding sourcing, procurement and supply management, procurement and best business practices, best practices in sourcing management and global sourcing management, financial strategies for sourcing, responsible procurement,diversity procurement, managing risk, supplier selection, project management for procurement and supply managers, managing supplier relationships, international sourcing, managing supplier relationships supply management operations, With the rise of global supply chains, environmental/sustainability concerns, and constantly evolving technology, the time is right for understanding Strategic Global Sourcing Best Practices.

Globalization leads to increased fierce competition and companies which do not pursue successful global sourcing within the next five years are probably not able to survive. However, global sourcing projects are highly complex and two-thirds of all sourcing projects in Europe are considered to have failed. A tool of ten steps is elaborated to show how to evaluate the success of sourcing by considering the potentials and risks in an international context. Successful managing of international sourcing, however, does not only imply the primary goal to acquire parts cheaply abroad, but it can be seen as a kind of strategic weapon to create a strong market position and to keep the company successful on the long term.

This informative, comprehensive, yet practical guide provides readers with a complete tool-kit of how to approach global sourcing successfully. Based on real world experiences on implementing and sustaining global sourcing the book provides readers with key guidance on: Foundations of Strategic Sourcing Management, risk, governance and legal considerations Organizational change, innovation and relationship management Transition planning and the end-game Successful principles for new business development from a service provider perspective Future trends, summary and lessons learned Ultimately this guide will take readers from ‘principles’ to ‘how to’s’ including: How to develop, implement, manage and govern an effective global sourcing strategy and plan How to put in place policies and processes that can be monitored to provide a balanced approach to sourcing How to build a strategic top-down framework coupled with an operational roadmap How to incorporate bottom-up implementation principles and practices that work How to ensure a coordinated, cost-effective and value-delivery plan and operating environment for strategic and tactical sourcing. In addition, it addresses the following areas in a comprehensive, yet easy to use and practical manner: Integrates strategic and operational concepts and practices Covers both clients and providers Supports the practice of global sourcing by leveraging and integrating professional rigor for best practices Provides practical knowledge, techniques, checklists and methodologies that can be used in any environment globally Includes many examples of current and emerging best practices Is broad and comprehensive, yet drills down to specific ‘how to’ details in all chapters Provides a global view of sourcing It comes highly recommended.

This practice guide on procurement strategy brings together methods and tools used by global purchasers across different industries. The authors lay major focus on the themes of global sourcing, risk management, and the dynamic topic of negotiation strategy. The authors present their perspectives on all important questions of strategic procurement such as: how to manage a heterogeneous supplier structure across different branches and how to deal with partners from diverse cultures? How to solve procurement crisis and proactively avoid them? How does off-shore team management work and how to increase the value-add for both internal and external purchasing? These themes are discussed along with numerous practice-based cases. The authors lay an ideal ground for global purchasers to help with their strategic and operational needs, including technological topics such as e-procurement.

Leading Procurement Strategy is a must-read for all senior procurement executives wishing to further enhance their skill set, master the latest developments in procurement strategy and really come into their own as procurement leaders. The expert author team explains how to effectively manage and mitigate risks in the supply chain, appreciate the key issues affecting the procurement function and develop best practice excellence in teams. Providing the latest thinking in procurement and supply management within the broad perspective of different industries, this second edition of Leading Procurement Strategy covers: global sourcing; supplier relationship management; cost management; information technologies and future developments. The book is underpinned by academic theory and supported by an extensive range of real world case studies drawn from the authors' experiences, including Tesco, Tata, Coca-Cola, BAA, P&G and IBM. This new edition provides the skills, knowledge and tools needed to articulate an effective strategy and embrace a transformational role to lead procurement teams, showing how procurement can become an influential function that delivers sustainable competitive advantage.