Global Sourcing

Implementing effective procurement strategies is a key challenge for companies in today's global market. Only with strategic approaches to sourcing companies are able to face the rising cost pressure. Strategies such as global sourcing and outsourcing of procurement functions are methods to encounter the situation.This thesis spans a framework from traditional purchasing to global sourcing all the way to outsourcing of procurement functions. On this journey the author outlines different strategies as well as the driving forces of globalization. It delivers a pragmatic approach to global sourcing from the identification of markets and suppliers all the way to the final sourcing decision. In addition the work outlines the strategy of procurement outsourcing to achieve cost efficiency in every spend category.A case study about sourcing of furniture in Eastern Europe and Asia illustrates the proceeding in a global sourcing project. The concept of this thesis is of great use for students becoming procurement practitioners as well as for procurement staff in search for tools to increase the effectiveness of their procurement department.