Global Sourcing: Critical Analysis Harvard Case Solution & Analysis

1.0.         Introduction

The articles in question are focused on global sourcing, which refers to outsourcing or relocating manufacturing in the global regions. The report isfocused on review of eight articles on related and interchangeable topics of Global sourcing.

2.0.         Critical Analysis

Majority of the articles reviewed arebased on case studies and surveysto find the overall implicationof offshoremanufacturing against home based production. Additionally, outsourcing has also been taken into consideration and compared with other options. The article by Trent and Monckza(2003) on global sourcing takes a different approach compared to others. It has kept focus on Global sourcing, while explaining its difference from international purchasing.

These articles align to compare different approaches towards the manufacturing (production) trends prevailing in the industry. Many high-tech companies have moved their manufacturing and even design division, from US to Asia to reduce the costs (Pisano & Shih, 2009). The authors have critically reviewed these options based on case studies and market studies.

2.1.           Common Theme

The common theme of these articles is to recommend an efficient and viable manufacturing option. These studies have been carried out to understand the overall long-term implication of the manufacturing decisions on performance of the company.

2.2.           Conflicts

Trent and Monckza(2003)have taken a different approach and had done a thorough study on integrated global sourcing and have emphasized an adoption of global sourcing for big global organizations. On the contrary, remaining articles have compared off-shore manufacturing to on-share production.

2.3.           Insights and Implications

This section will give a brief summary of each article to form a combined insight on the topic.

2.3.1.      Trent and Monczka (2003): Integrated Global Sourcing

International purchases and Global sourcing are two distinct terminologies but often used interchangeably. International purchases refer to transactions carried out between buyer and seller in different countries. On the other hand, Global sourcing is the integration of business division and processes across the globe. The articles conclude that companies should adopt this system to gain competitive advantage, which will result in a purchase price reduction, decline in cost of ownership and improved supplier quality(Trent & Monczka, 2003).

2.3.2.      Markides and Berg (1988):  Manufacturing Offshoreis bad business

This article focuses on doing business in home country which in this particular article refers to United States. It also concludes that the manufacturers tend to be attracted towards minor labor saving to hide in-efficiencies. The companies can improve the performance by automating different processes and reduce inefficiencies like Kodak and Black & Decker. It is also argued that the Japanese companies have manufacturing and assembly plants in US and yet, they perform comparatively well. Offshore manufacturing can have problems like slow updates and changes in product, piracy issues in developing countries and de-valuation of dollar (Markides & Berg, 1988).

2.3.3.      Dabhilkar and Bengtsson (2008): Invest or divest?

It compares outsourced (manufacturing processes) and alternate manufacturing processes. The alternative processes refer to improvement and changes in the current manufacturing operations to make the process more efficient. The alternative practices proved to be a better option with positive outcome as suggested by the study. It can be improved further with investment in manufacturing processes to reduce inefficiencies.It was also concluded that outsourcing can only be considered a good decision to free resources for time-being (Dabhilkar & Bengtsson, 2008).........

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