Fundamentals of Global Sourcing
It so easy to think of acquiring a supplier, globally, is much akin to that of a domestic or U.S. supplier. However, the concept is far more involved and complicated. What needs to be discussed and reviewed as well as any specials, rules, laws or cultural norms must also be addressed. One of the most daunting concepts to consider is that if a problem takes a week to address and cure with a supplier in the states, it could literally take months with a global supplier. This is why global sourcing cannot be an afterthought. This session addresses many of the concepts we need to consider at the start.
Some of these concepts might include:
- How to start a global purchasing program outside the U.S.
- Develop a strategy for when things go right, and especially, when they go wrong
- Key points to remember when negotiating with your trading partner; cultural, legal, relationship, socializing
- Understanding Differing Culture and Customs
- U.S. and International Legalities; oral contracts, CISG, passage of risk, Incoterms and more
- Key components of the International Purchase Order and how it differs from a domestic P.O.
- Understand what’s involved in various methods of payments
- Managing the cost of logistics in global trade
- Appreciating Ethical concerns with your trading partner
- Case analysis
- Article review
This session is a great primer for the new global buyer as well as a review for the more seasoned. It emphasizes the critical area which often causes issues and concerns and can cause a break in harmony with a global provider.
Manager, supervisors, buyers, production managers, and sellers can all have a better understanding of how best to deal with a supplier who is responsible for a critical component located over 9,000 miles across the ocean.