Low Cost Country Strategic Sourcing
R. David Nelson, C.P.M., A.P.P.
R. David Nelson, C.P.M., A.P.P., Vice President, Global Supply Management, Delphi Corporation
Lori A. Sisk, C.P.M., A.P.P.
Lori A. Sisk, C.P.M., A.P.P., Supply Chain Strategist, Delphi Corporation
90th Annual International Conference Proceedings - 2005 - San Antonio, TX
Many CPOs are reviewing the opportunity and challenge of globalization and the effect it will have on their extended enterprise. The supply chain organization must put focus on the global economy in order to understand the new risks and opportunities associated with it. A focused effort on the international transformation will highlight the need for leading edge sourcing strategies of which the fittest will survive. A robust process that integrates the low cost country objectives and mitigates the associated risks is necessary to optimize the value stream. As part of this process, an analysis of total cost will define the cost drivers for the particular product or service to be sourced. This, along with demographics, the health of the country’s economy, global relationships, and the organizational strategy will drive sourcing decisions. Overall, there are many risks, opportunities and challenges that need to be understood in order to optimize sourcing decisions in a global economy.