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by   | Abstract: | Today, it's not a matter of if your company will source globally, but how to go about it when it eventually does. |
Lured by the lower costs of offshore material, manufacturing and labor, and advanced by desires to penetrate emerging markets, enterprises have been testing the waters of offshore supply since the 1980s. In recent years, trends such as globalization, outsourcing and cost reduction pressure have accelerated the need for businesses to leverage offshore suppliers. According to research by Aberdeen Group, the use of foreign suppliers will nearly double by 2008, with offshore sources expected to account for 27% of the typical company's total supply base. Manufacturers and large enterprises will rely even more heavily on offshore suppliers. The path to successful overseas sourcing of suppliers is strewn with rocks, though. Qualifying suppliers, negotiating agreements and actually achieving the expected cost benefits are not trivial tasks. [Click to continue] |