Global sourcing: process and design for efficient management

Although the literature on the strategic aspect of global sourcing is large, detailed studies on this procurement strategy from a process perspective are limited. This paper adopts the process viewpoint and examines the design and management issues associated with the global sourcing process based on a case study at a leading firm in the US aviation industry. The effectiveness of the company's global sourcing process is evaluated, the design alternatives of the supply chain structure are compared, and the critical issues of efficient management of the process are summarized. Specifically, three logistics-based criteria are developed to indicate the effectiveness of the transportation and distribution network. The paper also demonstrates that the process design can be assessed based on the dimensions of supply chain integration. Finally, a flow-level matrix is developed to identify the critical issues of managing the global sourcing process.