The Role of International Contract Management in Global Markets

1765 Words4 Pages
bulb-icon

Recommended: Benefits of global sourcing

1. Introduction

Purchasing products and services of foreign origin can be extraordinarily challenging. At the same time, many new issues must be addressed if a sourcing team is to ensure that its organization receives the right quality, in the right quantity, on time, with the right services, at the right price.

In recent years, the term "foreign sourcing" has largely been replaced with "international sourcing": the process of purchasing from suppliers outside of the firm's country of manufacture. At a number of leading firms, international sourcing is being replaced with a broader international approach called "global sourcing." Professor Monczka and Trent define global sourcing as "the integration and coordination of the requirements across worldwide business units, looking at common items, processes, technologies, and suppliers."1

In order for the purchaser to buy internationally, a contract had got to be concluded first, so as to ensure the benefits of both parties. And international contract are more complex as compare to local contract. Therefore in this assignment, we shall discuss the importance of international contract and its own complexity.

----------------------------------------------------------------------------------------------------

--------

Robert M. Monczka and Robert J. Trent, "Global Sourcing : A Development Approach," International Journal of Purchasing and Materials Management, Spring 1991, p.3.

Why Purchase International Goods and Services?

International sourcing requires additional efforts when compared with domestic sourcing, but it can yield large rewards. One of the complexities of buying goods and services of foreign origin is the wi...

... middle of paper ...

...fluenced by historical incidents or unfounded prejudice.

Bibliography

Robert M. Monczka and Robert J. Trent, "Global Sourcing: A Development Approach," International Journal of Purchasing and Materials Management, Spring 1991, p.3.

Dick Locke, "Get the Purchasing Channel You Want," Electronics Components, October 1993, p.U-12.

Donald W. Dobler, "Purchasing and Supply Management," Text and Cases, Sixth Edition, 1996.

Michiel R. Leenders, D.B.A., PMAC Fellow, "Purchasing and Supply Management", Eleventh Edition, Irwin McGraw-Hill.

C. Chatterjee, "Negotiating Techniques in International Commercial Contracts", Ashgate

Steven M. Bragg, " Outsourcing, A guide to... Selecting the correct Business Unit... Negotiating the contract... Maintaining control of the process", 1998

P.J.H. Baily, " Purchasing and Supply Chain Management", Fifth Edition

Show More
Related

  • Outsourcing in Intercollegiate Athletics

    948 Words  | 2 Pages

    Outsourcing simply means acquiring services from an external organization instead of using internal resources (Butler, 2000). By using outsourced resources, organizations can gain a competitive advantage by utilizing contingent staff to accomplish strategic goals without incurring the fixed overhead. By focusing on the leading edge and highly specialized skill sets, outsourcing providers can often offer higher quality services, or at a lower price than the client organization. Typical reasons for outsourcing go beyond simple contingent staffing. Outsourcing providers are able to maintain economies of scale with regard to specialization (...

    Read More

  • Leadership in the Organization: Jeff Bezos and Amazon

    1697 Words  | 4 Pages

    Kargar, J. (2004, January 1). Amazon.com in 2003. Journal of the International Academy for Case Studies, 33-52. Retrieved February 24, 2012, from ABI/INFORM Global. (Document ID: 1909313031).

    Read More

  • Effectiveness of Rhetorical Devices Used in Two Articles

    1095 Words  | 3 Pages

    Kibbe, C. (2004, 07 09). Outsourcing: the good, the bad and the inevitable. New Hampshire Business Review, pp. 1A-21A.

    Read More

  • The Pros and Cons of Outsourcing

    1607 Words  | 4 Pages

    Outsourcing has been around for many years. In this paper, I will discuss some of the history of outsourcing, the good things about outsourcing, and the bad things about outsourcing. Outsourcing is important because many companies rely on it in order to get many different products and services to their facility on time and in good shape. Outsourcing is a huge part of the business industry today. Any business can be affected by outsourcing.

    Read More

  • The Fashion Industry: Zara

    1482 Words  | 3 Pages

    Ferdows, K., Lewis, M., & Machuca, J. A.D., 2003. Zara. Supply Chain Forum: International Journal, 4(2), 62-66.

    Read More

  • Apple Globalization Case Study

    1176 Words  | 3 Pages

    The organization has had to ensure that it has retail stores in many countries globally and website options in more than 100 countries. The company further enhances access of online stores in more than 37 countries which is accessible all the time and people are able to access the services regardless of their location. Globalization further affects the organization in the sense of international market management which requires it to engage in strictly global decision making. The organization’s production networks have been geared to enhancing global competition (Lüsted, 2012) .The Company is further good when it comes to seizing the opportunities available in global market. For the organization to find efficient as well as cheap means of production, it has to bargain hard so as to allow its contractors to have low profits. This mostly is consequential to the suppliers cutting corners with the use of cheap

    Read More

  • Outsourcing Development Work to India

    2311 Words  | 5 Pages

    [4] Gupta, Sachin. For a global software company, outsourcing began at inception . World Paper. April 19. 2004 http://www.worldpaper.com/2004/april/april4.html

    Read More

  • Outsourcing Information Security Consultants

    1798 Words  | 4 Pages

    Outsourcing is a technique for companies to reassign specific responsibilities to external entities. There are several motivations for outsourcing including organizational, improvement, cost, and revenue advantages (Ghodeswar & Vaidyanathan, 2008).

    Read More

  • Global Supply Chain Management

    997 Words  | 2 Pages

    Outsourcing labor and materials in a global market can significantly stretch the supply chain structure. This can have both positive and negative effects. Looking to different countries provides the opportunity to access different markets and find the lowest possible manufacturing costs. Many companies also embraced the Toyota Motor Corp. model of just-in-time inventory and other lean manufacturing techniques that emphasized speed and cost reduction (Bosman, 2006...

    Read More

  • The Sourcing Process: Souring For Merchandiser

    979 Words  | 2 Pages

    Sourcing is defined as the process of determining how and from where manufactured goods or components or raw materials will be procured. The main motivation of the sourcing process is to obtain high satisfaction with the low cost. Materials essentially incorporate piece products that will be cut and converted into the garments. In the case of raw material, it is also important that availability of raw material (both in quality wise and quantity wise) when it is needed along with the suitability of the material for garment design and end use. Sourcing is essentially deciding the most cost-effective merchant of materials, generation, or completed products at the predetermined quality and administration level. It is nearly related and an essential piece of merchandiser's responsibility. Sourcing department along with merchandiser assumes the fundamental part of execute and shipment of fare request effectively. Merchandiser must ensure that all approvals related to the fabric and trims ought to be composed of the sourcing division in given time allotment. Lead time, the process of fabric and trim approvals, the expense of logistics and INCO terms are the essential parameters need to remember while choosing the sourcing strategies for

    Read More

  • The Scotts Company: Transforming The European Supply Chain

    843 Words  | 2 Pages

    Products are not standardized and vary by country in terms of type, packaging and specification. This increases production time, production costs, lead tim...

    Read More

  • National Culture Influences on International Management

    2527 Words  | 6 Pages

    Svensson, G., 2001. 'Globalization' of Business Activities: A 'Global Strategy' Approach, Management Decision, 39(1), pp.6-18.

    Read More

  • Hierarchical Structure: The Traditional Organizational Structure Of An Organization

    1414 Words  | 3 Pages

    A disciplined approach to management eying leading employees, improving the management team and building the business strategy. Instead of treating each problem as a one off. They design systems and structures that make it easier to handle in the future. (Techrepublic, 2015) 2.2. Risk of exposing confidential data: When an organization outsources HR, Payroll and Recruitment services, it involves a risk if exposing confidential company information to a third-party Synchronizing the deliverables: Some of the common problem areas include stretched delivery time frames, sub-standard quality output and inappropriate categorization of responsibilities. At times it is easier to regulate these factors inside an organization rather than with an outsourced partner Hidden costs: Although outsourcing most of the times is cost-effective at times the hidden costs involved in signing a contract while signing a contract across international boundaries may pose a serious threat Lack of customer focus: An outsourced vendor may be catering to the expertise-needs of multiple company at a time. In such situations vendors may lack complete focus on your organization 's tasks.   2.3. 1.Know the

    Read More

  • Burger King Marketing Analysis

    1062 Words  | 3 Pages

    Daniels, J. D., Radebaugh, L. H., and Sullivan, D. P., (2011). International Business: Environments and Operations. Prentice Hall, Upper Saddle River, New Jersey.

    Read More

  • Globalization and Technology

    1460 Words  | 3 Pages

    Stonehouse, G., Campbell, D., Hamill, J. & Purdie, T. (2004). Global and Transnational Business (2nd ed.). Chichester: John Wiley & Sons.

    Read More

More about The Role of International Contract Management in Global Markets

Open Document