Item selection for global purchasing |
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| Affiliation: | 1. Department of Information Systems and Operations, WU Vienna University of Economics and Business, Austria;2. Faculty of Economics, Friedrich Schiller University Jena, Germany;1. Chair in Marketing and Innovation Management and Professor of Marketing, Faculty of Economic Sciences, University of Goettingen, Platz der Goettinger Sieben 3, 37073 Goettingen, Germany;2. Senior Lecturer of Marketing, School of Communication, Journalism and Marketing, Massey University, Private Bag 102 904, Auckland 0745, New Zealand;3. Raymond A. Young Foundation Chair and Professor of Marketing, Spears School of Business, Oklahoma State University, 312A Business Building, Stillwater, OK 74078, United States |
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| Abstract: | The progressive removal of trade barriers coupled with improved international communications, transportation and logistics offer increasing scope for procurement on global markets; on the other hand, use of JIT policies for procurement and production drive towards the greater use of local suppliers. The international purchasing decision is examined in cases where the vendor location has changed and a model is presented to identify those items which can beneficially be procured from abroad and those which are best obtained locally. The model is then applied to a number of items and some broad guidelines are proposed for selecting appropriate procurement strategies. |
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