"8 Global sourcing[This page should take about 40 minutes to complete]flickr photo sharedby kcp4911 under a Creative Commons ( BY ) licenseWhile global sourcing provides opportunities to improve quality, cost, and deliveryperformance, it also poses unique challenges for personnel responsible for purchasing.Engaging in global sourcing requires additional skills and knowledge to deal withinternational suppliers, logistics, communication, political, cultural, and other issues notusually encountered in domestic sourcing. The total cost of ownership framework can also beused to compare the cost-effectiveness of domestic versus global sourcing.Various methods are employed for global sourcing. It is not merely limited to setting up aninternational purchasing office or using existing purchasing personnel to handle thetransactions in-house. An import broker or sales agent, can be used. Import brokers andsales agents do not take title to the goods. Instead, title passes directly from the seller to thebuyer. International purchasers can also buy foreign goods from an import merchant.Purchasing from a trading company, which carries a wide variety of goods, is another option.There are numerous international trade organisations (e.g. WTO, NAFTA, EU) designed toreduce tariff and non-tariffbarriers among member countries. ? Import Broker: Sales agent who performs transactions for a fee? Import Merchant: Buys and takes title to the goods and resells them to a buyer? Tariff: An official schedule showing the duties, taxes, or customs imposed by the hostcountry on imports or exports? Non-tariff barriers: Import quotas, licensing agreements, embargoes, laws and otherregulations imposed on imports and exports9 Conclusion[This page should take about 2 minutes to complete]flickr photo shared by NicholasEckhart under a Creative Commons ( BY ) licenseThis module dealt with important supply issues such as the role of purchasing within a firmand its impact upon supply chain operations. Strategic sourcing methodology was detailed asa broad-based approach for systematic design of sourcing requirements. Further, variousitem-specific assessment tools were introduced to ensure efficiency and alignment across sourcing activities. Key sourcing practices were also reviewed to enable you to get deeperinsights into how businesses organise and manage their sourcing needs. "