CHAPTER 5Purchasing in Global Supply Chains

Purchasing provides the input into global supply chains.


Purchasing as a strategic function has a clearly defined role in global supply chains. It takes place in the inbound or upstream portion of the global supply chain, it involves buying something (such as raw materials, component parts, work in process, products, or services), and it should be strategically and tactically integrated with the elements of the production cycle for multinational corporations (MNCs). However, this is where the clarity stops! We will use the term global purchasing (and sometimes just purchasing) to elaborate on the concept within strategic global supply chain management (SCM) and within ...

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