Learning Objectives
Module 6 – Global Sourcing (7 Sessions)
1. Low-cost Country Sourcing
- Low-cost Country Sourcing
- Understand the major issues of the global sourcing environment, such as barriers and facilitators to global sourcing, with special reference to low-cost country sourcing.
- Sourcing from China
- Conduct a total cost of ownership (TCO) comparison; including pre-transaction,
- transaction and post-transaction costs; of sourcing an item domestically versus from a low cost country.
- Identify and discuss some critical business and social issues of sourcing from low-cost countries, including child labour and countertrade.
- Countertrade and Social Environment Issues
- Identify sources of information on low-cost country sources.
2. NAFTA Sourcing
- Sourcing and Rules of Origin
- Identify important issues in the NAFTA sourcing environment, such as drivers and challenges to sourcing from Mexico to the United States.
- Corruption Perception Index
- Discuss the relative merits of Mexico vs. China as low-cost country sources.
- Currency Exchange
- Estimate or project the impact of national politics, currency rates, oil prices, etc. on the viability of NAFTA sourcing.
- Inland Ports and Trade Corridors
- Determine the role of trade corridors and inland ports as facilitators to NAFTA trade.
3. Global Supply Chain Game Intermediaries
- CN Case Discussion
- Agents and Merchants
- Subsidiaries
- Discuss the role and function of various intermediaries in global sourcing.
- Freight Forwarders
- Non-vessel Operating Common Carriers
- To identify the intermediaries available to facilitate global sourcing.
- Export Management Companies and Other Intermediaries
- Discuss the role and function of various intermediaries in global sourcing.
- Recommend direct or indirect distribution and (if indirect) a type of intermediary to support a specific global sourcing scenario.
4. Freight and Payment Terms and Security Issues
- INCO terms and Payment Options
- Describe the purpose and characteristics of the Inco terms 2000.
- Recommend when to use various means of payment available to importers/buyers.
- Foreign Exchange and Hedging
- Discuss the impact of currency exchange on global sourcing risk, and execute a currency hedge.
- Security and risk Issues
- Understand other security issues, including hijacking, bottlenecks, and terrorism.
- Discuss intellectual property and threats to it, including piracy and counterfeit goods.
- Canadian Broker Services Agency
5. Sourcing Around the World
- Sourcing in China
- Address the important concerns of sourcing in China.
- Sourcing in India and Africa
- Identify important logistical difficulties associated with India and Africa
- Sourcing in Latin America
- Identify risks associated with supply chains in Latin America
6. Strategic Global Sourcing
- Intellectual Property and Counterfeit Goods
- Design a supply chain to support the sourcing of a product from a foreign country.
- Select Inco terms, terms of payment, currency of transaction, and etc. to support the sourcing of a product from a foreign country.
- Coloplast A/S Case Discussion
- Discuss strategic global sourcing strategy for Coloplast A/S, and relate global sourcing strategy to your own organization.