Online Market – What Does it Mean to Global Sourcing and Multinational Purchasing Companies?

By name, global sourcing companies imply that they have got to go for multinational purchasing for obvious and oft repeated reasons such as cost controlling in order that they gain required edge over competition and tap global talent pool- an act they are masters at and are doing since long even when there was no concept of online market.

Multinational purchasing is a complex act of supply chain management across multiple borders, cultures, regulations and currencies. Complications attached with global sourcing (frequently used interchangeably with multinational purchasing,) which can be hardly explained in simple terms, is a delicate act of balancing mutually opposite forces. Before the emergence of online market, the global sourcing companies were making things fall into place right on time and importantly at right price efficiently using the old world communication media such as facsimile, telephone etc.

-Online Market- Plans for Global Sourcing and Multinational Purchasing Firms

Online market hopes to build business on three critical issues that bog the multinational purchasing and global sourcing companies.

1. Eliminate repetitive and routine clerical work often prone to costly errors

2. Remove irritating and costly communication mode proven to be erroneous

3. Facilitate freedom of multiple choice across online market

All global sourcing firms or anyone that spent some time in multinational purchasing will accept these online market points readily. That online market automates global sourcing and makes life easier for multinational purchasing managers should be a welcome factor for them.

Unfortunately, there are creases to be ironed out before rejoicing. If online market automates everything else but fails to mind the chinks in payment processing which it has seriously, let alone the multinational purchasing and global sourcing companies, not even the online can hope to earn credibility with individual consumers in an international transaction.

The next very serious issue the global sourcing as well as the managers of multinational purchasing companies have raised about online market is the lack of authentic system to certify or ensure credit worthiness of countless small and medium online market retailers. Often, we hear of complaints about differences in quoted and received goods.

It is harsh to term the global sourcing and multinational purchasing firms as skeptics because of their apprehensions about online market because the same multinational purchasing and global sourcing companies were buying internationally all the time. Online market has some miles to go and address issues raised by them and put in place a foolproof dispute redressal system.