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Global Procurement: Motivations and Strategy

Published on Oct 1, 1994in Marketing Intelligence & Planning
· DOI :10.1108/02634509410069074
Shan Rajagopal6
Estimated H-index: 6
(University of Strathclyde),
Kenneth N. Bernard7
Estimated H-index: 7
(University of Strathclyde)
Abstract
Global procurement is not a simple or easy solution to a company′s sourcing needs. With new markets and changing competitors challenging established business, global sourcing is now offering an opportunity for organizations to meet these challenges on a global basis. Discusses the varied interpretations and significance of global sourcing as an ingredient of success, emphasizing the link between world‐class production/quality, marketing and procurement. From these discussions and empirical evidence, provides a matrix of management choices to facilitate the selection of worldwide sourcing strategies most appropriate to corporate goals.
  • References (18)
  • Citations (35)
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References18
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Abstract Motivations underscoring offshoring and backshoring are typically investigated as separate entities in the academic literature. This separation undermines a deeper comprehension of the two phenomena, and implicitly denies the conceptualization of backshoring as a possible step of the firm internationalization process. Our paper seeks to fill this gap by (1) understanding the relations (if any) among offshoring and backshoring motivations at firm level; (2) exploring whether backshoring ...
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Procurement, organisational buying, purchasing, sourcing, strategic sourcing, and more latterly within the public sector, “commissioning”, are all terms used to denote the function of and the responsibility for, procuring materials, supplies, and / or services. Many organisations look to transform their procurement function with varying degrees of success, and this thesis aims to identify what makes procurement effective and how an organisation can successfully transform their procurement functi...
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The supposed benefits of global sourcing in supply chain management remain subject to debate. Here this study investigates the potential benefits of global sourcing using a large dataset obtained from a leading European automotive original equipment manufacturer, spanning a period of five years. Contrary to expectations, this study found no evidence that low-wage country sourcing leads to cost reductions relative to sourcing from suppliers based in industrialized countries. However, the data doe...
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Setting up an international purchasing office (IPO) is one of the key steps for firms doing global sourcing. This paper aims to explore the relationship between strategy and structure in a contemporary global purchasing context. We build a theory of IPOs, employing a case study method to address two research questions—what types of IPOs exist in China? And how may an IPO become strategic to its parent's global purchasing? We identify three types or clusters of IPOs along four dimensions: motives...
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