Strategic Global Sourcing Best Practices

Preface ix

CHAPTER 1 An Overview of Global Strategic Sourcing 1

The Strategic Sourcing Plan 2

Operational Sourcing Strategy 10

Summary 17

CHAPTER 2 Operational Alignment with Sourcing Strategy 21

Understanding Requirements 21

Opportunity Analysis 28

Category Segmentation 35

Summary 37

CHAPTER 3 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

CHAPTER 4 Cultural Considerations for Global Sourcing 57

Conducting Business in Other Nations 58

Cultural Values 58

Sourcing Challenges 66

Summary 70

CHAPTER 5 Supplier Research and Market Analysis 71

Conducting Supplier Research 71

Conducting Market Analysis 81

Summary 85

CHAPTER 6 Solicitation of Bids and Proposals 87

Solicitation Planning 87

Solicitation Methods 96

Summary 99

CHAPTER 7 Supplier Evaluation and Selection 101

Evaluation Criteria 101

Summary 123

CHAPTER 8 Negotiation Revisited 125

The Nature of Negotiation 125

Negotiation Strategy 126

Negotiation Planning 129

Developing a Negotiation Plan 130

Exception Conditions 135

Summary 138

CHAPTER 9 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

CHAPTER 10 Sustainability 153

Issues in Sustainability 154

Guidelines 163

Criteria for Supplier Evaluation 167

Summary 169

CHAPTER 11 Risk 171

The Nature of Risk 171

Why Is Understanding Risk Important? 172

Risk Management Principles 172

Summary 181

CHAPTER 12 Global Sourcing 183

Developing a Global Sourcing Strategy 184

International Trade Requirements 188

Summary 195

Glossary 197

Suggested Reading 207

About the Authors 215

Index 217