Adapting to online market may be able to help companies survive sometime in the future.
Look at the indications, almost all global sourcing activities by multinational purchasing
companies are in online market, people prefer anonymity in their dealings, online market
assures quicker execution in matters of routine nature and so it holds the sway for all
global sourcing and multinational purchasing etc. Anyone in the online market can advertise
online, just like he/she would have done offline in order that the business gets a boost to
activities such as selling, global sourcing and multinational purchasing.
Without online market efforts global sourcing can be uphill for SMEs, especially those that
don't have a physical presence in prime sourcing destinations such as China. Obviously
global sourcing needs to tap the functionality and flexibility of electronic business model
and communication tools and transactions with partners as well as multinational purchasing
partners, without which global sourcing will remain a complex activity. To name a few of
them, global sourcing or multinational purchasing involves tons of documents, interacting
with about 25 parties such as freight forwarders, customs and banks apart from dealing with
foreign exchange matter, time zones and languages.
ONLINE market allows global sourcing by multinational purchasing arms of corporations to
build on business models based on savings and improve enterprise value besides streamlining
day-day operations. In a nut shell, online market acts as facilitation point for global
sourcing and multinational purchasing firms for value addition to otherwise mundane imports.
Look at what multinational purchasing managers perceive online market driven global sourcing
as: global sourcing enables quicker business execution, giving potentiated quality, savings,
besides innovation, making global sourcing a challenging and rewarding experience for
multinational purchasing managers.
Unfortunately, many manufacturers and SMEs aren't able to tap the full potential of ONLINE
market and thereby affect cost-savings opportunity, that ca impact their bottom lines. The
obvious functionality the ONLINE market provides removes the need for progression from local
buying to multinational purchasing and then to global sourcing which can well be envisioned
as a continuum through different tiers.
Global sourcing isn't a rat race and the theory of 'survival of the fittest' does not apply
here as long as rules of multinational purchasing are embedded to dampen the dramatic
fluctuation of impact of global sourcing by tackling issues upfront. A strong plan based on
commitment and vision at executive level will let multinational purchasing firms to handle
issues and reap the benefits that global sourcing can provide via online market.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
What is e-business?
By: lames_03 | 31-01-2008
what is e-business?
How can your company benifit from e-commerce
By: lames_03 | 31-01-2008
how can your company benifit from e-commerce
Medical websites e-commerce revenue
By: askyask1 | 19-12-2007
What is the e-commerce revenue of medical websites in the entire world in 2007? and what is the expected revenue in '08, '09 and '10?
Global e-commerce revenue sales of 2007
By: askyask1 | 19-12-2007
What is the revenue of global e-commerce sales of 2007, and the expected for 2008? In other words, how much money did the e-commerce industry roll in the entire world, in all e-commerce websites in 2007, and what is expected in 2008? The kind of answer I'm looking for is something like: "The e-commerce industry made sales worth of $xxx in the entire world in 2007... and is expected to make $xxx in 2008".
What is the importance of a web site in business
By: hamza_butt | 18-12-2007
what is the importance of a web site in business
How do I get a company to take back faulty consignment
By: kimbo1962 | 17-10-2007
I have just recently bought lingerie and chain accesory from a company in Yiwu. Despite specifications given to the company I received a consignment of 7800 thong and chain that is so inferior as you put the article on it snaps. The company initially said it would take it back and pay all costs, now I am battling just to try and get some compensation as all promises made by them have not been kept.
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