Global procurement is the sourcing of supplies internationally.

You or
your company are looking to buy or look for supplies outside the
country

Stages

Preliminary Research: Since global procurement is about searching

for the right location for product manufacturing, research should be the
very first thing to do for this process. identifies the important and
unimportant operational activities. should also work on analyzing
customer and market requirements, as well as identifying competitors.

Supplier and Market Evaluation : In this stage, the company should

start creating a list of supplier selection benchmarks. These
benchmarks will be used to find the most appropriate vendors or
suppliers.

Selection of the supplier: In this stage, the company will now get
ready in choosing the right supplier that will sign the agreement with
the company. A detailed list of available suppliers within the location
should be present and each should pass the benchmark given by the
sourcing team.

Implementation: After choosing the supplier, a performance analysis

schedule should be developed. It should be outlined by the activities
present in the implementation process. It is necessary from the part of
companies to create a performance analysis schedule. In this process, sourcing
agents can be of great help to organizations.

If the sourcing strategy is properly implemented, the companies can get the benefits
in the form of lower costs, flexible laws, lesser currency fluctuations and shortening
of lead times.

Performance Monitoring: This will measure whether the global

procurement process is working correctly.
 Startegy
 Setting Objectives: Developing a successful global sourcing strategy starts with
setting clear objectives based on business goals. These objectives should align with
the organization’s overall strategy and consider factors such as cost reduction
targets, supply chain optimization, and risk mitigation.
 Evaluating Potential Regions/Suppliers: Extensive research and analysis are vital
when evaluating potential regions and suppliers for global sourcing. Factors such as
production capabilities, labor costs, logistics infrastructure, political stability,
intellectual property protection, and regulatory compliance should be thoroughly
assessed.
 Developing Supplier Relationships: Building strong relationships with suppliers is
crucial for successful global strategic sourcing. Clear communication channels and
trust-building initiatives such as supplier visits and joint development projects can
help establish long-term partnerships based on mutual understanding and shared
goals.
 Implementing Quality Control Measures: Implementing robust quality control
measures throughout the sourcing process is essential to maintain product quality
standards. This includes conducting thorough supplier evaluations, implementing
inspection protocols at various stages of production, and monitoring ongoing
compliance with quality requirements.
 Monitoring/Optimizing Strategy: Continuously monitoring market trends, supplier
performance metrics, cost structures, and external factors ensures that the global
sourcing strategy remains aligned with changing business needs. Regular evaluation
allows for adjustments to be made to optimize efficiency and mitigate risks
effectively.