International sourcing

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Globalization leads to increased fierce competition and companies which do not pursue successful global sourcing within the next five years are probably not able to survive. However, global sourcing projects are highly complex and two-thirds of all sourcing projects in Europe are considered to have failed. A tool of ten steps is elaborated to show how to evaluate the success of sourcing by considering the potentials and risks in an international context. Successful managing of international sourcing, however, does not only imply the primary goal to acquire parts cheaply abroad, but it can be seen as a kind of strategic weapon to create a strong market position and to keep the company successful on the long term.