Global Procurement

Global procurement enables firms to pursue the full potential of international sourcing by capitalising on the world's best suppliers (Lysons and Farrington, 2006)

Information about Global Procurement

Global procurement is a broad concept of strategic nature that is usually found in larger firms. It includes procurement from company-internal and company-external suppliers and covers some issues of production and product development (Schneider et al., 2011). The need to increase the number of suppliers, non-availability of certain commodities in domestic markets, competitiveness of overseas resources and access to worldwide technology are among some of the reasons for a global procurement decision (Pooler, 1992; Leenders et al., 2002; Lysons and Farrington, 2006).

Global procurement is different from and more complex than international purchasing. The former represents a strategic direction and the latter is a functional activity. Because of the complexity of global procurement the responsibility for it is usually undertaken by specially designated teams who report at a high organisational level (Trent and Monczka, 2003). For example, the Unicef supply division is the department tasked with overseeing Unicef's global procurement operations with 158 staff working in regional offices, as well as at the supply headquarters in Copenhagen. The division also oversees a supply section in New York and warehouse hubs in Dubai, Panama and Shanghai (Financial Times, 2010).

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