Article 3 Review
Hyseni, F. (2019, May 1). Leaders consider a new approach to sourcing strategies in the global digital age. Forbes. Retrieved from https://www.forbes.com/sites/forbescommunicationscouncil/2019/05/01/leaders-consider-a-new-approach-to-sourcing-strategies-in-the-global-digital-age/#670cbce16832
Synopsis
The article “Leaders Consider a New Approach to Sourcing Strategies in the Global Digital Age” by Fatmir Hyseni (2019) highlights the concept of global sourcing and its impact on large scale firms. Having worked as a chief marketing officer of an IT outsourcing company, the author provides an editorial of her first-hand experience on matters of international sourcing. In Hyseni’s view, global sourcing can help businesses obtain raw materials, purchase ready-made products to generate more revenue, drive innovation to meet customer needs, retain clients, and use a skilled workforce.
The author broadly discusses the benefits of global sourcing under five subtopics. In the first section, she highlights the connection between sourcing international raw materials, reducing costs, and improving customer experience. According to Hyseni (2019), global sourcing helps companies to acquire primary commodities more quickly and economically, hence translating lower costs to end-users, a practice that facilitates improved customer experience. However, she warns leaders to be vigilant and develop contingency plans for factors that may hinder consistent flow of raw materials, including political interruptions and abrasive tariffs. Hyseni also discusses the financial advantages of purchasing ready-made products on a firm’s operations. Thirdly, she acknowledges that business practice outsourcing (BPO) can help cut costs and provide an organization with the capability to innovate (Hyseni, 2019). Fourthly, she advises leaders on the need to have big data analytics and effective advertising methods to attract and retain customers. Finally, Hyseni points out the growing demand for skilled workforce and the competitive advantage that corporations which invest in global labor possess. The main idea contained in the five sections is the role of global sourcing in supply chain management.
How this Relates to Chapter 10
Similar to Chapter 10, the selected article discusses global sourcing benefits. Hysen (2019) mentions that in her line of work, she has witnessed that the international sourcing can meet company needs of obtaining raw materials, purchasing ready-made products, and retaining customers, among others. She encourages leaders to incorporate outsourcing into their strategic plans based on these advantages. Additionally, Hyseni (2019) highlights some of the factors that firms should consider while selecting their global suppliers, such as political disruptions and economic bottlenecks. Based on these aspects, she advises businesses to have flexible sourcing strategies. Correspondingly, chapter 10 highlights some of the advantages of global sourcing -cost savings, availability, quality, innovation, entry into new markets, and supplier selection issues, which include price differentials and legal systems.
My Opinion on the Article
In my opinion, international outsourcing is essential for companies wishing to maintain a competitive advantage in the global market. Firms that source goods and services across geopolitical boundaries are more likely to enjoy higher quality primary commodities, low costs of skilled labor, and diverse technological innovations. Due to the cost advantages obtained, the corporations can easily sell their products at lower prices, attract, and retain a broader customer base. While the benefits of global sourcing are undeniable, managers should be keen on the global supplier selection process as it may substantially affect the venture’s future success. In particular, businesses should ensure that the chosen supplier is trustworthy, consistently delivers products on time, can satisfy future needs, and has a favorable bid for the goods. Furthermore, the supplier’s values and principles should align with the company’s values to facilitate lasting business relationships.