6-12. What are the components of the global sourcing development model presented in this chapter?
Planning, specification, evaluation, relationship management, transportation and holding costs,
implementation, and monitoring and improvements make up the components of the global sourcing
development model presented in this chapter.
6-13. What are some of the challenges of implementing a global sourcing strategy?
In terms of the challenges of implementing a global sourcing strategy, as organizations continue to
expand their supply bases, many are realizing that hidden cost factors are affecting the level of benefits
6-14. Pick, and discuss, two components of the global sourcing development model presented in this
Any two components listed in the answer to Question 6-12 could be discussed.
6-15. What is total cost of ownership and why is it important to consider?
When taking a total cost of ownership (TCO) approach, firms consider all the costs that can be assigned
to the acquisition, use, and maintenance of a purchase. With respect to global sourcing, the logistics
6-16. Why are some firms considering near-sourcing?
Near-sourcing refers to procuring products from suppliers closer to one’s own facilities. Firms are
considering near-sourcing because of rising transportation and energy costs, growing desires to be able
to quickly adapt to changing market trends, and risk and sustainability concerns.
6-17. Name, and give an example of, the five dimensions of socially responsible purchasing.
Diversity includes procurement activities associated with minority or women-owned
The environment includes considerations such as waste reduction and the design of products
for reuse or recycling.