Organizations drive strategy and performance: insights from two successful lead buying models

Procurement fads come and go. However, any thoughts that global sourcing is just the latest in that growing string of purchasing fads are misplaced. Within a short span of time, global sourcing has gained worldwide acceptance and is now firmly implemented in most large-scale corporations. Global sourcing is a direct response to the competitive pressure experienced by companies today. It is developing into the favored option for companies that need to reduce costs and to improve the quality and responsiveness of their procurement. Buyers send their largest suppliers to low-cost countries or set up small sourcing offices in these regions, in the hope of gaining better access to material and labor resources or to tap the potential of a more economical market.