Strategic Global Sourcing Best Practices (Best Practices (John Wiley & Sons))

241 Pages·2011·2.32 MB·English

Chapter= Date:Nov17,2010 Time:1:37pm
Chapter= Date:Nov12,2010 Time:1:28pm
Strategic Global Sourcing
Best Practices
Chapter= Date:Nov12,2010 Time:1:28pm
Chapter= Date:Nov12,2010 Time:1:28pm
Strategic Global Sourcing
Best Practices
FRED SOLLISH, MS
JOHN SEMANIK, MBA

JohnWiley&Sons,Inc.
Chapter= Date:Nov12,2010 Time:1:28pm
Copyright©2011byJohnWiley&Sons,Inc.Allrightsreserved.
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LibraryofCongressCataloging-in-PublicationData:
Sollish,Fred.
Strategicglobalsourcingbestpractices / FredSollish,JohnSemanik.
p.cm.
Includesindex.
ISBN978-0-470-49440-0(hardback);ISBN978-0-470-94928-3(ebk);
ISBN978-0-470-94929-0(ebk);ISBN978-0-470-94930-6(ebk)
1. Industrialprocurement. 2. Purchasing. 3. Strategicplanning. 4. Business
logistics. I.Semanik,John.II.Title.
HD39.5.S6642011
658.7(cid:2)2–dc22
2010037969
PrintedintheUnitedStatesofAmerica
10 9 8 7 6 5 4 3 2 1
Chapter= Date:Nov17,2010 Time:1:37pm
Contents
Preface ix
CHAPTER1 An Overview of Global Strategic Sourcing 1
The Strategic Sourcing Plan 2
Operational Sourcing Strategy 10
Summary 17
CHAPTER2 Operational Alignment with Sourcing Strategy 21
Understanding Requirements 21
Opportunity Analysis 28
Category Segmentation 35
Summary 37
CHAPTER3 Source to Settle (S2S) 39
Why Source to Settle? 39
Implementing an S2S Process 47

Managing the S2S Process 53
Outsourcing the S2S Process 54
Summary 54
CHAPTER4 Cultural Considerations for Global Sourcing 57
Conducting Business in Other Nations 58
Cultural Values 58
Sourcing Challenges 66
Summary 70
v
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vi Contents
CHAPTER5 Supplier Research and Market Analysis 71
Conducting Supplier Research 71
Conducting Market Analysis 81
Summary 85
CHAPTER6 Solicitation of Bids and Proposals 87
Solicitation Planning 87
Solicitation Methods 96
Summary 99
CHAPTER7 Supplier Evaluation and Selection 101
Evaluation Criteria 101
Summary 123
CHAPTER8 Negotiation Revisited 125
The Nature of Negotiation 125
Negotiation Strategy 126
Negotiation Planning 129
Developing a Negotiation Plan 130
Exception Conditions 135
Summary 138
CHAPTER9 Supplier Diversity 139
Diversity Programs 139
The Business Case for Diversity 142

Supplier Diversity Best Practices 144
Global Supplier Diversity 147
Diversity Advocacy Organizations 148
Summary 151
CHAPTER10 Sustainability 153
Issues in Sustainability 154
Guidelines 163
Criteria for Supplier Evaluation 167
Summary 169
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Contents vii
CHAPTER11 Risk 171
The Nature of Risk 171
Why Is Understanding Risk Important? 172
Risk Management Principles 172
Summary 181
CHAPTER12 Global Sourcing 183
Developing a Global Sourcing Strategy 184
International Trade Requirements 188
Summary 195
Glossary 197
SuggestedReading 207
AbouttheAuthors 215
Index 217
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