Problem
1. If your organization or one with which you're familiar globally sources at least one material or service, please (a) describe the item being sourced and its importance to the organization and (b) why they are sourcing it globally, i.e. low cost, close to production, etc. (c) identifying an advantage and disadvantage to global sourcing that would apply to this organization. Why? OR (d) identify a specific cost that might be included in the total cost analysis. Why?
2. Find an article that refers to a globally sourced product or service and estimate (a) its importance to the company and (b) why they are sourcing it globally. (c) identifying an advantage and disadvantage to global sourcing that would apply to this organization. Why? OR (d) identify a specific cost that might be included in the total cost analysis. Why?
Be sure to include the link to the article and support your estimates based on information from the course.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.
Resources & References
Read the following reference materials for Lesson 4 on Global Supply Chains:
• Managing a global vs. local supply chain @ WT100 (need to register, which is free)...
• Insight on best practices in managing a supply chain:
• A link on some differentiation of Total Cost of Ownership between industries, as well as further links on the Total Cost concept:
• Write up by Symphony Consulting on the challenges to outsourcing manufacturing for small & medium sized organizations.
• Visibility to total costs...
Total Cost Visibility: The Key to Strategic Sourcing Success.