COMPETITIVE

SOURCING IN
INTERNATIONAL
TRADE
By
Dr.R.Chandran
Director

Pillai’s Institute of Management

Studies & Research
 MEANING
ABILITY OF A COMPANY TO
GATHER/COLLECT AND FORM PRODUCTS
TO RIGHT MARKET, AT RIGHT TIME AND
IN RIGHT FORM.

THE FOCUS IS TO DO EVERYTHING AT A

COMPETITIVE PRICE.
 IMPORTANCE
“HOW MITSUIBISHI OPERATES”
WHY THE WHOLE WORLD RESPECTS
WALLMART ?

MORADABAD ATTRACTS SAUDIS;

ITALIANS COME TO KARUR; BADOHI
IS TALKED IN FRANCE.
 BUSINESS HAS THREE
ENTITIES.
CENTRE
BACKWARD (EXPORT FORWARD
(SOURCING) OFFICE) (MARKETING)

IF BACKWARD IS STRONG
IT IS COMPETITIVE
IF FORWARD IS COMFORTABLE
IT IS A STRENGTH
IF BOTH ARE STRONG
IT IS A COMPETITIVE STRENGTH
NO ONE CAN SHAKE IN THE GLOBE.
EG:- WALMART, SONY, DURIEN,
LG, NOKIA, GOODYEAR.
SOURCING DESTINATIONS

NATIONAL INTERNATIONAL
EVOLUTION
 ERA OF CIVILISATIONS
 MARCOPOLO TOWARDS EAST
 CENTRAL ASIAN ATTACKS.
 WESTERN POWERS IN INDIA
 GUILD SYSTEM IN ITALY
 BRITISH POWER
 AMERICAN, JAPANESE, GERMAN AND
CHINESE TRADERS
 SOURCING – AS A FUNCTION

NO RESPECT OR POSITION

COST MANAGERS
STRONG NEGOTIATORS
WALKING ON A TIGHT ROPE
PRODUCT PERFECTION – DEPENDS
ON SOURCING
INTELLIGENCE – REQUIRED MORE
THAN ALL THE FUNCTIONS
SOURCING AT MACRO-
ECONOMIC AREAS
IMAGINE:
INDIA WITHOUT BITUMIN
SULPHUR
ROCK PHOSPHATE
URANIUM
WOLLEN RAGS
MEDICAL EQUIPMENTS
NEWSPRINT
SOURCING SUCCESS OF FEW
GLOBAL COMPANIES
FIN.RESOURCE GLOBAL
- JAPAN MARKETS

N.A
DESIGN RESOURCE
- CALIFORNIA
MIATA W.E
(SPORTS
CAR)
PROTOTYPE E.E
- UK

HUMAN RESOURCE L.A

- MEXICO COMPONENT
- JAPAN
 CHINESE SOURCING

RAW MATERIAL
S.K

WORLD
MARKETS
HUMAN RESOURCES
CHINA

SOFT TOYS
ACCESSORIES
H.K

MARKETING
SINGAPORE
INDIAN COMPANIES

LEATHER

SHOES

ACCESSORIES
JACKET
GLOBALLY
COMPETITIVE
TECHNOLOGY
PIECE
GOODS

WORKFORCE
 CRITERIA FOR SOURCING

RIGHT LOCATION
NARROW DOWN TO RIGHT PEOPLE
AUTHENTIC INFORMATION
EXPERIENCE
MANPOWER STRENGTH
RELIABILITY
KNOWLEDGE OF TRADE AND
FINANCE
 MATCHING PRICE
THROUGH EFECTIVE SOURCING

EXERCISE:1
BULK CARGO
EXERCISE: 2
FINISHED PRODUCT
 SOURCING IN CHAIN STORES
“NO CONTACT OR REFERENCE OR
INFLUENCE IS ENTERTAINED IN
TARGET, WALGREENS, MARK &
SPENCER”.
ANY ONE CAN APPROACH
 SOURCING IN CHAIN STORES
HOW CURRENCY DEVALUATION
DETERMINES GOOD SOURCI NG

“GO TO THE COUNTRY WHERE ITS

LOCAL CURRENCY DEPRECIATES”.
 SOURCING AND OTHER
FUNCTIONS

AGENTS
WORK FORCE
CONTRACTORS

TRANSPORT

STORE

BANK
CONCEPT OF SCM
NO INVENTORY
NO MONEY BLOCK
FLOW OF GOODS
RIGHT PRECAUTION
SPEEDY DELIVERY
GOODWILL
GROWING IMPACT
ACQUISITIONS
TAKEOVERS
MERGERS
CONSOLIDATION
COST LEADERSHIP
THANK YOU