Purchasing refers to a business or organization attempting to acquire goods or
services to accomplish the goals of the enterprise
- - Meet the needs of the manufacturing function or other internal functions for which it was buying
- - Play a role in keeping the operation running smoothly by ensuring a reliable source of supply
"Boundaries are shrinking and disappearing, and what's becoming apparent is that global purchasing and domestic purchasing are flowing, blending, and converging into one stream."
R. Jerry Baker
Definition of international purchase
- - Relates to a commercial transaction between an buyer and a supplier in different countries
- - Optimal procurement of Material World wide search for procuring from vendors who meet the right quality, price, quantity, delivery target
- - Identifying, developing and accessing the optimal source of supply to the business regardless of the location
- - Process of manufacturing and /or purchasing of components in various parts of the world and then assembling them into a final product
Factors to consider in international purchase I
- - Problems associated with international purchasing: trade barriers, language, culture/customs, nationalism, political stability, transportation core, transportation delay, telecommunication problems, and processing delays.
- - Criteria for choosing international suppliers: competitive differentiation (low price, better quality, advance technology, quick response, on-time delivery, and willingness to resolve problems) +4 country-specific items: government assistance, counter-trade requirements, geographic location, and foreign subsidiary recommendation.
- - Trading relationships with suppliers: commitment (loyalty, dedication of resources, trust, and compatibility) and openness (open channels of communication, partner-like relationships, and sufficient notification of changes).
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