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International Purchasing
&
International Procurement
Strategy
What is Purchasing?
Purchasing refers to a business or
organization attempting to acquire goods
or services to accomplish the goals of the
enterprise
Objectives:
Meet the needs of the manufacturing function or
other internal functions for which it was buying
Play a role in keeping the operation running
smoothly by ensuring a reliable source of supply
International Purchasing
"Boundaries are shrinking and
disappearing, and whats becoming
apparent is that global purchasing and
domestic purchasing are flowing, blending,
and converging into one stream."
R. Jerry Baker
Definition of International
Purchasing
Relates to a commercial transaction between an buyer
and a supplier in different countries
Optimal procurement of Material
World wide search for procuring from vendors who meet
the right quality, price, quantity, delivery target.
Identifying, developing and accessing the optimal
source of supply to the business regardless of the
location
Process of manufacturing and /or purchasing of
components in various parts of the world and then
assembling them into a final product
Drivers of International
Purchasing
Resistance to change
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14
Decentralized
(site-based)
operational
activities
Real-time
communication
methods
Information
sharing with
suppliers
International
purchasing
office support
Sourcing and
contracting
systems
Availability of
critical
resources
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