"Global procurement enables firms to pursue the full potential of international sourcing by capitalising on the world's best suppliers (Lysons and Farrington, 2006)"
Global Sourcing is a practice of obtaining goods and services from various locations. This type of technique would be a huge benefit for our company beneficially and long term as its cost of labour is better off being kept very low as this means that the product that is being sourced is very cheap. The main advantage in term of using this method is that it involves economic efficiency. This means that if our company itself chose to use labour production processes from different countries they would find that again this is also very cheap. Production costs are very low also. The main disadvantage for this method is the fact that it Domestic job issues as being the key problem here. As our company has itself put our type of country in the eastern European industry, the main problem with this issue is manufacturing products from a different country manufacturing plant makes the domestic labour workless. This seems to be the case as in our company it states that problems were found from this eastern European plant had been lacking in producing quality products for our company and contractors. http://www.slideshare.net/williamsjohn164/global-sourcing-advantages-and-disadvantages (Global Sourcing Advantages and Disadvantages, WilliamsJohn164, published June 5th 2013)
Within the public sector, the Public Procurement Law regulates the purchasing and contracts for procuring goods and services. This is done to allow open competition within the EU Public Procurement market. In Scotland, the Public Contracts (Scotland) Regulations 2006 will mainly apply to our company as it has now been made easier for ourselves and those in partnership to be able to comply with the public procurement rules as they have now been disclosed in one place.
Contracts can be advertised on the OJEU notice, which is a standard form notice placed in the EU official Journal and the use of standard form notices is mandatory. At times a contract may be awarded to the most economically advantageous tender (MEAT), which does not take price as a factor, instead it focuses on quality and running costs.
Within the International procurement process, the OKI Group adhere to strict procurement policies within its organisation as they place huge importance on CSR and promote procuring activities that support it. They comply with the laws, regulations, and societal norms that apply to each country and territory. The main aim is to create the most appropriate level of quality and cost to ensure the procurement of materials are stable.
Certain purchasing activities are based on the OKI Group Environmental Vision 2020. They work in full cooperation with suppliers to create strong partnerships to ensure compliance with all laws and regulations. So, in our terms this would be a direct linkage to the products raw materials being bought and package over for shipment from abroad. http://www.out-law.com/page-7089 (The Public Procurement Regulations of 2006: an introduction, Out-Law.com) http://dictionary.cambridge.org/dictionary/business-english/global-procurement (Cambridge Dictionairies Online, Global Procurement) http://www.out-law.com/page-5964 (Out-Law.com, Public procurement law: the basics)
There are many complex risks associated with importing goods due to the amount of hidden costs present. Import procedures use trading terms such as Inco terms which are internationally recognised set of trading terms used in contracts of delivery. Which allow for special trade-related payment methods in order to reduce the risk of uncertainty occurring within international trade. This is achieved by taking the currency exchange volatility and foreign regulations into consideration. It also assists Paterson Enterprises in preparing Bill of laden for any disclosed shipment handover…