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Global Supply Chains Tools


Global supply chain tools

Global supply chains are networks that can span across multiple continents and countries for the purpose of sourcing and supplying goods and services. Global supply chains involve the flow of information, processes and resources across the globe.

 

Low cost country sourcing is linked to global supply chains and refers to the procurement of products and services from countries with lower labour rates and reduced production costs than that of the home country.

 

In the technological age in which we live sourcing products and services internationally is now easier than ever before. Global supply chains give procurement the opportunity to take advantage of the strengths and innovation of other countries to keep business both current and competitive. Global supply chains involve the management of different cultures, religions and time zones as well as ethical good practice, different currencies, extended lead times and import and export requirements. Whilst engaging in global supply chains offers benefits the level of risk is often high and needs close management and mitigation processes in place.

 

Low cost country sourcing gives further opportunities for procurement to obtain reduced costs, innovation and higher levels of expertise. When engaging in low cost country sourcing the procurement organisation can contribute positively towards an economy that may not be as affluent as their own by increasing job opportunities, providing training and enhancing working conditions.

 

The appreciation that low cost country sourcing comes with risks that must be managed closely to avoid the occurrence of reputational damage through poor quality and unacceptable ethical conduct, is a key factor when engaging with this style of procurement.

 

CIPS members can access the tools below to help your business function at its best capacity and efficiency. Sign in to access the member content below: