Global Buying System

The Global Buying System, commonly referred to as global procurement or global sourcing, is a strategic approach to sourcing goods and services from the most competitive locations around the world. It involves identifying and evaluating potential suppliers on a global scale to find the best mix of quality, cost, and reliability. This system is crucial for companies looking to optimize their supply chains and reduce costs. For instance, a company might source raw materials from one country where they are cheaper and of high quality, and then have the products assembled in another country where labour costs are lower.

The process is complex and includes managing longer supply chains, dealing with various international trade regulations, and ensuring timely delivery of goods. Successful global sourcing can lead to significant cost savings and competitive advantages, but it also requires careful planning and execution to mitigate the risks associated with extended supply chains.