One could say we are living in a smaller world, perhaps a more efficient world… or has time and technology delivered us the ultimate choice and selection for goods and services for consumers and businesses alike? Either side of the argument or debate, one thing is for sure:  Global Sourcing has delivered a broader range of goods and services at a far more competitive price point than say 20 + years ago. Adding to the debate, our national pride is to purchase locally. Arguably the goal is to deliver competitive price points for the products, while maintaining quality to specification and compliance. Both internal and external governance on all goods and service means products standards need to be adhered to, ensure consumer safety, and product brand investment are delivered as promised. Service and inventory management is also added to consideration when sourcing locally or internationally. One could only imagine the cost of the purchase of a vast amount of commodity item with a 6 to 8 week lead time. Stock held on hand locally would need to be considered and factored into COGS. If you add any fluctuations, product deletions or a major fail at an inbound quality check, you have more issues than only the high cost inventory sitting idle.

However, low cost doesn’t always mean poor quality.  Locally we might not have the expertise, or the volume in production to warrant high technology processing compared to other high population nations. Take into consideration that high volume output, allows significant capital investment in higher technology.

There is an increase in market competition, new technologies and sheer scale of volumes to supply centralised technology regions scattered around the globe. The competition for supply is competitive, demanding due diligence by your Category Manager and your Procurement Director, who will need to thoroughly investigate and support.

Support to Procurement – let’s start with Quality, Inventory, and Manufacturing through to R&D and innovation teams or business functions. Finally don’t forget Finance and getting FX correct in your COGs once can start to see the complexity sourcing either locally or internationally.

Talent Focus Recruitment, networks with excellence, specialist in search methodology, trained consultants and researchers assist and drive. Talent Focus Executive Search Sydney & Singapore delivers across all key note business functions.

When your organisation requires customised, confidential, corporate search methodologies, call either Luke or Stephen for a confidential conversation.

Stephen Ibbotson
Talent Focus,
Director of Executive Search ANZ and Asia Pacific
Tel : + 61 2 9421 5900.