Organisational Approaches to Managing International Sourcing

In: International journal of physical distribution and logistics management, Volume 20, Issue 4, p. 3-12

Abstract

Analysis of the organisational structures utilised to
conduct international purchasing activities was
undertaken at 24 multinational corporations. The
majority of the corporations studied
had decentralised purchasing organisations and all had
corporate purchasing staffs. Four basic approaches
were found: (1) totally decentralised; (2) co‐ordinated;
(3) totally centralised; and (4) separate
international purchasing group. Within this overall
framework there were several forms of staff
assistance to assist operating units effectively
accomplish their international purchasing goals. This
assistance included foreign buying offices, trading
companies and international staff specialists. There
was also a common philosophy which indicated the
necessity of worldwide sourcing.