Procuring Local, Procuring Global, Where Are We Now In 2018?
Abstract
This research investigation displays a critical analysis of the significance of
international procurement and the benefits that coincide. The prime aim of this study
is to develop an in-depth analysis of the contemporary value of global vs local
procurement.
The research will investigate the overall general risks and benefits of both in an
organisation and will determine whether international procurement is still used and is
effective in current businesses.
The study is based around a qualitative approach where data was gathered through
6 semi-structured interviews. The planned outcome is to compare the challenges and
benefits identified by the six practitioners, (from different companies with global
reach). The study will consider the differences and similarities as well as critically
evaluating the findings in the relevant literature. These interviews were carried out
between February 2018 and March 2018.
The research uncovered that international procurement is still very active and valued
in contemporary businesses despite the on-going changes of focus within the
procurement function.
It is apparent that the benefits of sourcing internationally have changed over the
years, but cost remains a constant and consistent benefit. It also revealed that 3
reoccurring themes were prevalent despite the participant’s diverse experiences of
global sourcing:
Lower Cost
Concern over Lead Times
Different Cultures
Practitioners also expressed their uncertainties and concerns for the future of
international logistics and supply chain management and what position they reckon it
will be within the next five years.