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.