Overview This course provides hands-on training in the selection procedures, contractual issues, and negotiation techniques for hiring and supervising consultants and other providers of technical services for projects funded by the World Bank and other financial institutions. The course will also address the broader topic of policy and legal issues related to the hiring of intellectual and technical services: Course Outline Overview of Procurement of Consulting Services New World Bank Procurement Framework Consulting services distinguished from goods, works and technical services Historical development and evolved practices Risks in procurement Special features in hiring consultants: Preparation of TORs, RFPs, Evaluation Reports Course Advisor Sabine Engelhard is a lawyer specialized in procurement whose career focus has been in international development, capacity building and governance-related issues.
Where should one begin, though? There are so many things to consider when evaluating where your organization stands in terms of its global reach, not just to its customers, but also with its suppliers. Issues that management should be aware when it comes to global sourcing include: The distinction between Global Sourcing vs.
International Purchasing First, a distinction needs to be made between global sourcing and international purchasing. Global sourcing helps identify opportunities, coordinate initiatives and make programs available to merchants worldwide International procurement management.
This emphasizes working closely with suppliers to ensure that the needs of the customer are being fulfilled.
On the other hand, international purchasing can be viewed as a function within global sourcing, where product is imported for sale within a country and there is little involvement with the company supplying the product.
This is more difficult than purchasing domestically. However, international purchasing can be viewed as more of a tactical function than as a strategic function.
Wal-Mart has been actively pursuing a strategy that emphasizes global sourcing. By actively working with these suppliers, Wal-Mart has realized sales increases of 46 percent in England, 94 percent in Germany, 38 percent in Canada, and 25 percent in U.
Levels of Global Sourcing Knowing where your organization stands in terms of its global network of suppliers influences how much improvement your company can achieve.
According to Robert Trent and Robert Monczka — leading academics who have done extensive business consulting — there are five different levels of purchasing that an organization can operate: With this information, you are now equipped to make informed decisions about how the organization should improve its performance.
One organization that has capitalized on global sourcing is U. Caught in an extremely competitive market with little chance to differentiate, Santek re-evaluated its sourcing strategy to lower its operating costs by 30 percent to remain competitive.
Previously, Santek operated its global facilities with a customized approach that did not utilize any coordination between facilities. After three years, the result for Santek was, on average, a 20 percent savings on its global initiatives compared to the regional approach previously employed 2.
Effectively, Santek realized a shift from a Level 3 organization to a Level 5 organization. Risks When considering risks, one needs to identify the hurdles that can impede progress toward quickly and smoothly integrating an offshore supplier.
In an offshore destination these hurdles include inadequate government support, unorthodox country laws, and cultural differences. Proactive involvement with the government and strong understanding of the laws of the land can mitigate the headaches associated with outsourcing 3.
It is also strongly recommended that an organization hire an outsourcing advisor to guide the organization through the sourcing process. This can dramatically reduce the costs associated with outsourcing.
According to a study conducted by Ross Research, a market research firm, 62 percent of respondents claimed that using an external advisor helped shorten the sourcing process by one to six months.
Eight percent indicated a seven to 12 month reduction, and eight percent realized a time saving of one to two years 4. Another dangerous path organizations often follow is the road to low prices. Though the price per part may in fact be low, the price paid in quality issues can quickly exceed what an organization can handle financially.
A company should conduct site visits to ensure that the supplier is competent, even though it is expensive to visit worldwide locations. The cost of not making these trips could begin to snowball out of control due to sub-par quality.
According to David Cowell, chief procurement officer at bottling company Coca-Cola HBC, it is more important to identify whether a potential supplier was low-risk rather than how competitive it was in terms of price.Procurement is a business management function.
Procurement is essentially an acquisition of products and services, especially for the business purpose. what is typically the difference between sourcing and procurement roles?
Is there a difference between international purchasing and global sourcing? International Procurement: Challenges & Opportunities Adelicia Cliffe Morris DeFeo Alan Gourley October 23, Overview • Introduction –Historical barriers to foreign public procurement markets and international agreements opening up public procurement • Understanding Public Procurement Regimes –Brazil –UK –Saudi Arabia • Case.
Journal description. IJPM proposes and fosters discussions on the development of procurement resources, with emphasis on the implications that purchasing and supply management .
Operations management is the activity of managing the resources which are devoted to the production and delivery of products and services. It involves the design, management and improvement of products, services, processes and supply chains.
The primary responsibilities of this role, International Procurement Management Trainee, are to: Achieve pre-defined learning and development objectives in program rotations in each of the different Procurement areas, which may include ContractPay, Direct Materials Sourcing, Indirect Sourcing, and Strategy & Governance;. Since the procurement and supply management plan covers two or three years of implementa- tion, changes in the selection or the quantities of health products to be procured or the implemen- tation arrangements may occur for various reasons, including changes in national or international. The MSc International Purchasing and Supply Chain covers the issues connected with purchasing and sourcing and the main trends in management and supply chain policies.
Cruise Management International leverages its economy of scale to negotiate the best terms for procuring supplies on behalf of its passenger ship owners and fleets.
The MSc International Purchasing and Supply Chain covers the issues connected with purchasing and sourcing and the main trends in management and supply chain policies.
It includes approaches based on low cost country sourcing, Supplier Relationship Management (SRM), sectorial and responsible purchasing, logistic flow management, the volatility of raw materials and currencies and low cost .