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sourcing strategies in a global setting

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Differentiate between internal and external sourcing strategies in service and manufacturing organizations.

o What are the advantages and/or disadvantages of global sourcing?

o Assume the position of being in favor of or opposed to outsourcing a product/service within your organization to a foreign country.

o Defend your position with supporting arguments and facts.

o How would your position change if your organization mandated global sourcing?

Please list your reference and cite your work.

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Differentiate between internal and external sourcing strategies in service and manufacturing organizations.

o What are the advantages and/or disadvantages of global sourcing?

There are several advantages of global sourcing. When a large project is undertaken and the project requires on site outsourcing. Your personnel get the opportunity to work with the outside personnel and train themselves with the skills possessed by the outside personnel. For instance, when onsite laying of foundation for a bridge is outsourced, the companies own personnel learn the methods of laying a foundation. Another advantage of global sourcing is that it provides a degree of stability and continuity for the business. For instance, high employee turnover and disruptions in operations can cause instability to the operations. For instance, if a company global sources part of its requirements any disruption in in-house production will not upset the delivery schedules or the business of the company. Similarly, global sourcing can be used as a powerful tool for risk management. The risk of sudden strikes, risk of natural disasters, and risk of terrorist attacks on manufacturing facilities are reduced through global sourcing. One of the greatest advantages of global sourcing is that it enables the firm to focus more on its core activities, its peripheral activities can source globally. This keeps the organization focused. One of the most important advantages of global sourcing is cost and efficiency advantages. Consider the example of a production facility where the costs are high because of the high cost of labor. Simply global sourcing the production will enable the firm to get its products at a competitive rate. Another advantage of global sourcing is to gain control of companies operations. If the products of a company are manufactured in-house it will lead to a large organization that would be difficult to control. On the other hand if a firm takes up global sourcing it can reduce their operation to size that is manageable. Another advantage of global sourcing is that keeping all services in-house simply means incurring large overheads. These can be a drain on the company. The solution to this problem is global sourcing. Further, global sourcing enables ...

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