Procurement Management: Global Sourcing Methods and Strategies

PROCUREMENT
MANAGEMENT

EXECUTIVE SUMMARY
Procurement management refers to a strategic practice that is used by an organization to
optimally utilize the organizational spend. This helps in managing the operations of company so
that tasks are attained on time frame. This report undertakes Marks and Spenser that is a leading
global company in world. This report helps in examine the global sourcing methods that help
business enterprise to attain targets. Further it includes global procurement strategy that supports
in gaining competitive advantage within market.

Table of Contents
EXECUTIVE SUMMARY.........................................................................................................................2
INTRODUCTION.......................................................................................................................................4
MAIN BODY..............................................................................................................................................4
Critically examine global sourcing methods............................................................................................4
Global procurement strategies that leads to procurement excellence and improve the Competitive
advantage of an organization...................................................................................................................8
CONCLUSION.........................................................................................................................................11
REFERENCES..........................................................................................................................................12

INTRODUCTION
Procurement management defines that process of acquiring all items and services
properly so that process and projects are done effectively and efficiently. Global sourcing defines
as a procurement strategy that is adopted by an organization for sourcing goods and services
globally to get the efficient results in future perspective. It refers to acquiring products and
services of the organization from preferred suppliers within the budget set by a business
enterprise (Rane, Narvel and Bhandarkar, 2019) . The main aim of global sourcing is to
lowering the cost along with maintaining the quality of products. This report is based on Marks
and Spencer that is a leading company who deals on clothing, food, financial services, home
wares etc. The company operates on global level and works highly on using procurement
strategies to get efficient and effective outcomes within global business industry. This report
explain critically examine global sourcing methods which are used by an organization including
procurement strategy that leads excellence and improve the organization competitive advantage
within market place.
MAIN BODY
Critically examine global sourcing methods
Global sourcing is a process of producing products and services in an economic manner and
something’s to achieve this target organization need to search for domestic and foreign
manufacturer to produce a products (Jnr, 2019). It is one of the best practice that is used by an
organization where they find the best cost effective location for manufacturing for one or more
than one of the products that an organization sales to its customer on global level . For instance-
if a cloth manufacturing company finds that their products are manufactured in cost effective
manner within foreign country because of getting low wage labor than firm continues it’s
production in that country. Due to this cost of products are minimum that helps in attracting
number of people and gaining competitive advantage within competitive marketplace. For
example- company like Mark and Spencer buy cotton from foreign countries like India, China
etc. Where cost of cotton is low that helps an organization to produce t-shirt at low cost. For
example- a cement manufacturing company finds and examine that the cost of raw material and
production are lower in some other countries because of low manpower in that country where