Navigating global sourcing challenges can be difficult. Keys for successful global sourcing should include rigorous up-front planning, fact-based decisions, disciplined execution, and the right resources.
This paper presents the steps and key considerations that companies should bear in mind when developing and executing a global sourcing strategy. The paper describes the steps in the Global Sourcing Life Cycle Roadmap, from Assess, Design, Construct and Implement, through Operate and Review. Many organizations have realized that global sourcing should be a part of their core strategy to reduce costs and to introduce strategic flexibility and operational agility. The recession has made cost reduction a very high priority. Not surprisingly, 84 percent of the CEOs interviewed for PwC’s 14th Annual Global CEO survey, published in early 2011, indicated that they had implemented a cost-reduction initiative in the last 12 months.
Organizations are looking to various global sourcing options to help reduce costs.