Global Sourcing

1403 Words 6 Pages
Global Operations and Supply Chain Management is very vital to obtaining successful business or companies, both in the domestic and international realm. In this paper I will discuss many aspects of supply chain management as well as global operations, along with the advantages and disadvantages of each and how they tie into making businesses more successful both internationally and domestically.

Global Operations which can be defined as organizations that provide services and goods to consumers in all parts of the world, not just the domestic areas, but also internationally, while Supply Chain Management is the actual process of coordinating and integrating the flow of materials along with information, financing, and services among and within
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Competition also plays a role into why companies result to global sourcing, because competitors may have better products or ways to produce particular items and going the international route may be a way to combat that issue or even the financial and productivity playing field. Some of the top companies that are successful with their outsourcing practices are Accenture, which is a business processing service, IBM, and Wipro Technologies which is a business Technology company (Supply Chain Digital 2012). Although Global Sourcing can be vital part of companies lowering cost and increasing production for their materials, there are some advantages as well as disadvantages to going the global sourcing route. Some of the advantages to global sourcing includes, companies who decides to go the route of global sourcing gets to experience some of the skills and resources that locally are not available. The base of the suppliers is not just restricted to the domestic market which in turn gives the companies who partake in global sourcing the chance to conduct transactions with more competitive suppliers. Time difference can be an advantage in terms of the processing times, which can be important in getting transactions done on time or before your competition. The focus …show more content…
Outsourcing is the hiring of others to perform a lot of the noncore activities as well as the decision making among the company’s value chain, as opposed to tying down the company and its employees to perform those same duties. These firms commonly dwell in the logistics part for companies and accounting, but also conducts other roles that companies deem fit or want to let them conduct for them. When comparing the similarities of outsourcing and global sourcing, they are very similar, except labor in certain fields, cheaper labor as well. The ability and freedom to concentrate on other parts of the business are all similarities between the two and why companies outsource jobs

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