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What is Global Sourcing

Handbook of Research on Global Competitive Advantage through Innovation and Entrepreneurship
Global sourcing occurs when a firm aims to exploit global efficiencies in the delivery of a product or service from the global market for goods and services across worldwide geopolitical boundaries. Normally, it involves exploiting global efficiencies in the delivery of a product or service and is often associated with a centralized procurement strategy for a multinational firm.
Published in Chapter:
Strategic Challenges of the Portuguese Automotive Industry: In Search of an Iberian Sourcing Strategy
António Moreira (DEGEI, GOVCOPP, University of Aveiro, Portugal) and Ana Carolina Soares de Carvalho (University of Aveiro, Portugal)
DOI: 10.4018/978-1-4666-8348-8.ch014
Abstract
The main objective of this chapter is to define a set of strategic lines, from the public policy point of view, so that Portuguese suppliers of the auto industry can deploy a strategic alignment throughout the supply chain in order to position themselves as potential suppliers of the global sourcing strategy of their Iberian Peninsula clients. The characterization of the auto industry in Portugal and Spain is undertaken, framing the perspective of this industry and proposing the strategic guidelines for the Portuguese auto components industry to supply the Iberian market. The study supports a synergistic strategy between the Portuguese auto components industry and the Spanish automotive industry in order to increase the Portuguese incorporation in downstream activities of the supply chain. Portuguese auto components suppliers should adopt international relational strategies throughout the value chain in order to source their Original Equipment Manufacturer (OEM) clients and to reinforce their position as global suppliers. The strategy involves the consolidation of the Portuguese automotive cluster as global suppliers through specialization.
Full Text Chapter Download: US $37.50 Add to Cart
More Results
Inward Internationalization: Important Challenges Among SMEs
Global sourcing occurs when a firm aims to exploit global efficiencies in the delivery of a product or service from the global market for goods and services across worldwide geopolitical boundaries. For that firms need to integrate and coordinate procurement activities across worldwide business units, involving processes, technologies and suppliers. Normally, it involves exploiting global efficiencies in the delivery of a product or service and is often associated with a centralized procurement strategy of a large firm. Firms seeking to deploy global sourcing strategies normally seek to develop close relationships with suppliers emerged in order to develop a competitive advantage through upstream relationships in the value chain.
Full Text Chapter Download: US $37.50 Add to Cart
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