A Global Sourcing Strategy: What’s Different?<\/h3><\/div><\/div><\/div>PurchTips edition #120<\/p>\n<\/div>
Are Your Cost Savings Reports Believeable?<\/h4><\/div><\/div><\/div>Costs \u2013 A global sourcing strategy is often used to benefit from lower labor costs abroad. But there are also other additional costs for a buying organization to bear that aren’t part of domestic transactions. They include multi-modal freight charges, broker fees, bank fees, taxes called duties, and insurance to name a few.<\/p>\n
Laws \u2013 Global sourcing forces buyers and suppliers to choose one of three bodies of law to apply to their contract: the law of the buyer’s country, the law of the supplier’s country, or one applicable under a treaty accepted by both countries.<\/p>\n
Currency \u2013 The buyer and the seller must agree on a currency to use. While some buyers insist on their own currency for simplicity’s sake, prudent decisions consider use of the supplier’s currency when the buyer’s currency might strengthen relative to the supplier’s currency between the agreement and payment dates.<\/p>\n
Lead Time \u2013 Lead time for global purchases is usually significantly longer than for domestic ones. This is due to ocean travel being slower than air travel and customs clearance adding time not involved in domestic sourcing.<\/p>\n
Language & Culture \u2013 If you’re unfamiliar with the supplier’s language and culture, you increase the risk of communication challenges, misunderstandings, and offensive or uncomfortable encounters.<\/p>\n
Transportation \u2013 While domestic sourcing usually involves one shipping mode, global sourcing involves multi-modal transportation \u2013 a strategy for combining air, water, and ground transportation to get goods from the supplier to the port of the supplier’s country to your country’s port to your dock.<\/p>\n
Payment Methods \u2013 Global sourcing often involves payment using a letter of credit which requires the involvement of both the buyer’s and supplier’s banks.<\/p>\n<\/div><\/div><\/div><\/div><\/div>
Do You Want a More Rewarding Procurement Career?<\/h5><\/div>![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/12\/spsm_verify.jpg\" "\\"spsm_verify\\"")
<\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.<\/p>\n
Earning your SPSM Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!<\/p>\n<\/div>
Download<\/span><\/a><\/div><\/div><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div>![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/12\/services.jpg\" "\\"services\\"")
<\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
PurchTips edition #120<\/p>\n<\/div>
Are Your Cost Savings Reports Believeable?<\/h4><\/div><\/div><\/div>Costs \u2013 A global sourcing strategy is often used to benefit from lower labor costs abroad. But there are also other additional costs for a buying organization to bear that aren’t part of domestic transactions. They include multi-modal freight charges, broker fees, bank fees, taxes called duties, and insurance to name a few.<\/p>\n
Laws \u2013 Global sourcing forces buyers and suppliers to choose one of three bodies of law to apply to their contract: the law of the buyer’s country, the law of the supplier’s country, or one applicable under a treaty accepted by both countries.<\/p>\n
Currency \u2013 The buyer and the seller must agree on a currency to use. While some buyers insist on their own currency for simplicity’s sake, prudent decisions consider use of the supplier’s currency when the buyer’s currency might strengthen relative to the supplier’s currency between the agreement and payment dates.<\/p>\n
Lead Time \u2013 Lead time for global purchases is usually significantly longer than for domestic ones. This is due to ocean travel being slower than air travel and customs clearance adding time not involved in domestic sourcing.<\/p>\n
Language & Culture \u2013 If you’re unfamiliar with the supplier’s language and culture, you increase the risk of communication challenges, misunderstandings, and offensive or uncomfortable encounters.<\/p>\n
Transportation \u2013 While domestic sourcing usually involves one shipping mode, global sourcing involves multi-modal transportation \u2013 a strategy for combining air, water, and ground transportation to get goods from the supplier to the port of the supplier’s country to your country’s port to your dock.<\/p>\n
Payment Methods \u2013 Global sourcing often involves payment using a letter of credit which requires the involvement of both the buyer’s and supplier’s banks.<\/p>\n<\/div><\/div><\/div><\/div><\/div>
Do You Want a More Rewarding Procurement Career?<\/h5><\/div><\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.<\/p>\n
Earning your SPSM Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!<\/p>\n<\/div>
Download<\/span><\/a><\/div><\/div><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div><\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
Costs \u2013 A global sourcing strategy is often used to benefit from lower labor costs abroad. But there are also other additional costs for a buying organization to bear that aren’t part of domestic transactions. They include multi-modal freight charges, broker fees, bank fees, taxes called duties, and insurance to name a few.<\/p>\n
Laws \u2013 Global sourcing forces buyers and suppliers to choose one of three bodies of law to apply to their contract: the law of the buyer’s country, the law of the supplier’s country, or one applicable under a treaty accepted by both countries.<\/p>\n
Currency \u2013 The buyer and the seller must agree on a currency to use. While some buyers insist on their own currency for simplicity’s sake, prudent decisions consider use of the supplier’s currency when the buyer’s currency might strengthen relative to the supplier’s currency between the agreement and payment dates.<\/p>\n
Lead Time \u2013 Lead time for global purchases is usually significantly longer than for domestic ones. This is due to ocean travel being slower than air travel and customs clearance adding time not involved in domestic sourcing.<\/p>\n
Language & Culture \u2013 If you’re unfamiliar with the supplier’s language and culture, you increase the risk of communication challenges, misunderstandings, and offensive or uncomfortable encounters.<\/p>\n
Transportation \u2013 While domestic sourcing usually involves one shipping mode, global sourcing involves multi-modal transportation \u2013 a strategy for combining air, water, and ground transportation to get goods from the supplier to the port of the supplier’s country to your country’s port to your dock.<\/p>\n
Payment Methods \u2013 Global sourcing often involves payment using a letter of credit which requires the involvement of both the buyer’s and supplier’s banks.<\/p>\n<\/div><\/div><\/div><\/div><\/div>
Do You Want a More Rewarding Procurement Career?<\/h5><\/div><\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.<\/p>\n
Earning your SPSM Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!<\/p>\n<\/div>
Download<\/span><\/a><\/div><\/div><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div><\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
<\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.<\/p>\n
Earning your SPSM Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!<\/p>\n<\/div>
Need Better Performance From Your Procurement Team?<\/h5><\/div><\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
<\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/12\/services-contracting.jpg\" "\\"services-contracting\\"")
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