Sourcing Snapshot - Global Sourcing for Worldwide Competitiveness

Firms are increasing their global footprint in search of suppliers in worldwide markets for goods and services. Manitowoc Company, a large maker of cranes, is searching the world for goods: industrial tires in China, bearings from the Midwest, and important chassis parts from suppliers in Poland. At Manitowoc, purchasing and supply has been given executive-level status, with an executive who can lead and manage complex outsourcing and global sourcing decisions, who can establish global supplier relationships, and who is knowledgeable about various foreign cultures. The company recognized that it had to establish a purchasing executive to be in charge of purchasing for its 41 facilities in 14 countries across three divisions. Maximizing opportunities to leverage company spend and ensure dependable supply required worldwide sourcing and organizational and personnel transformations, all in support of globalization, which will continue into the future.

Source: Adapted from Aeppel, T. (2007, October 2), “Global Scramble for Goods Gives Corporate Buyers a Lift,” Wall Street Journal.