Forward & Global Sourcing
of Technical Products
of Technical Products
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Flashcards
Purchasing
concentrates on the process of buying goods in order to fulfill demands
Sourcing
describes the search for, qualification and operational use of sources of supply in terms of companies with the potential to supply goods or services with the requires quality
Procurement
characterizes the process of taking care of that the required goods and services are available for a company
Supply
emphasizes the provision of goods at correct place at the right time in the right quantity and with the right quality.
Global Sourcing
shows the global dimension of the sourcing and supply processes meaning that significant activities take place in all major world regions.
Forward Sourcing
is used to describe the idea to integrate suppliers in the sense of a value chain early in the product development process.
Strategic vs. Operational
long term, short to mid term
Commodity
good or product that is commercially used and can interchangeably acquired from various sources
Direct vs. Indirect Material
production (transferred to customer) vs support of production and processes (not transferred to customer)
induvidual / company ???
need vs. demand
Relevance of Sourcing
50-80% of spendings, 1€ not spent - additional earning (100%)
Day-to-Day Business
Recognition of requirements and demand, potential suppliers, verify payments, negotiate contracts
Strategic mid- or long-term
establish and maintain supplier relationship, manage and evaluate suppliers, monitor market trends
Negotiable parts of contract...
price, incoterm, interfaces, lot sizes, warranty, packaging,...
Global Sourcing - preconditions
Geopolitical events, Logistical advances, IT
Why Global Sourcing?
unavaiability of items here, price, quality, technology, faster delivery
Challenges GS
market overview, reliability of information, logistical complexity, cultural differences, risk assessment, currency and payment, legal & company regulations
Forwardsourcing - preconditions
reduce in-house created value, complexity, new strong economies, IT enables co-operation
Why Forward Sourcing?
complexity and dev costs, early access to innivations, risk sharing, unavailability of technology and labor, flexibility
Challenges of Forward Sourcing
Global market overview, long-term planning, will to share knowledge, cultural barriers, legislative systems, process organization
Supply Management
assure supply in budget/time/quality, best possible TCO, manage supplier base,
