Procurement from developing countries

Abstract

In 2008, world trade amounted to over $15.8 trillion, and developing countries were the origin of 38 % of worldwide exports. In every case, a sourcing (buying) decision had to be made, and as we shall show, global logistics is both a logical and essential component in these decisions. This chapter first reviews the motivation for global sourcing/procurement and the role of logistics in executing this strategy. Then we indicate how procurement managers and their logistics service providers can obtain the necessary information to evaluate logistics capabilities throughout the world. Finally, we illustrate the importance of global logistics to sourcing/procurement through an Appendix, a case study that spans the U.S./Mexico border.