In a two-to-three page paper (not including the title and reference pages), identify how your organization or an organization you are familiar with, can improve in the following best practice areas represented in the article:
Identification of spend types in your purchasing.
Identify suppliers with capabilities for global business.
Strategy of integrated supply approach with distributors.
Processes to track performance of suppliers including cost of ownership and outsourcing.
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Submit to your instructor your two-to-three page Word document (not including the title and reference pages). Your paper should be formatted according to APA style as outlined in the approved APA style guide, and should cite at least two scholarly sources in addition to the textbook.
Purchasing operations at global companies are extending sourcing strategy to other regions of the world. The trick is finding suppliers able to meet their rigorous standards.
On the face of it, developing and deploying sourcing strategy for maintenance, repair and operations (MRO) goods and services for a company with facilities located all over the world appears complex.
But, when you get right to the heart of it, it’s relatively simple, says Scott Singer, CPO at Rio Tinto in Brisbane, Australia, explaining that setting strategy for a global buy is not much different from the approach a centralized sourcing operation takes anywhere in the world. You want a superior unit price, a fair and reasonable mark up and a fulfillment model that provides the service you need, he says.
Singer, a member of Purchasing’s editorial advisory board who was with United Technologies Corp. when it received the magazine’s Medal of Professional Excellence in 2006, is a year into his new post at the global mining company and is working to hone its sourcing strategy.
While already sourcing some MRO goods globally, he and his team are considering taking more of an integrated supply or outsourcing approach to the buy. UTC, Intel and other global companies have success with integrated supply models, where they hire distributors or other companies to take over the purchasing process, integrating the provider’s technology with their own.