Global sourcing now the norm
Global sourcing is becoming the norm, according to a survey by the Chartered Institute of Purchasing and Supply which found that 81 per cent of UK-based procurement professionals surveyed now source globally. In addition, the vast majority (96 per cent) think that globalisation has not been exploited to its capacity in the procurement and supply-chain profession.
The survey also suggests that the long-term benefits of globalisation in procurement are seen as more than just cost cutting. Although 40 per cent said cost cutting as the main long-term benefit of globalisation, a greater number, 45 per cent, cited improving business efficiency and reducing the risks of supply-chain vulnerability as the main benefit.
The survey was released to mark the publication of the Institute’s White Paper titled “Procurement – Challenges and Opportunities in a Global Market Place”. The paper examines the increasing need for procurement professionals to engage in business activity on a global level.
Institute president Gerry Walsh, said: “Globalisation is not a new phenomenon, but we are seeing that procurement professionals are now realising much greater benefits from sourcing globally. In addition to cutting costs and gaining access to a wider range of products, the long-term strategic benefits of increasing business efficiency and reducing supply-chain vulnerability through global procurement are today’s reality.”
The survey highlights the ethical conundrum that faces procurement professionals. Some 60 per cent of those surveyed cited carbon footprint monitoring, global warming, and the demand for fair-trade products as the issues that will have the greatest impact on global sourcing. Looking at carbon footprint monitoring alone, purchasers think that it will increase the costs of sourcing products (54 per cent), increase the time taken to source products (23 per cent), and require additional supply-chain transport options (20 per cent).
Walsh said: “Purchasing managers have to be alive to the ethical implications of global procurement. While measures such as carbon footprint monitoring may increase costs, they are important from an environmental perspective, and are no barrier to the wider benefits of global sourcing.”
Global sourcing now the norm
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