• Identify relevant organizational challenges in management of global sourcing and discuss the impact on the organization as a whole
• Identify processes, techniques and assessments in order realise global sourcing synergies
• Explore effective category sourcing strategies and processes in order to balance cost, risk, and value
• Structure relationships with suppliers and prepare negotiations
• Analyze the impact of digitalization on global sourcing

The course begins by introducing the context of global sourcing practices, the global sourcing organization. Then, it is discussed how companies may pursue synergies through procurement by enabling economies of scale, of information and learning, as well as of processes. Then procurement category management methods are presented through a set of frameworks and tools in order to understand the requirements for sourcing coordination and management across and within worldwide company locations. The focus is then directed towards specific purchase   categories matching internal users (stakeholders), which are often geographically dispersed, with suppliers able to comply with the needs of the global organization. The purchase categories may involve both specific bill-of-material items and more generic purchase categories such as IT and transportation services; the latter often representing a major cost spend element for global sourcing organizations. Contract management and compliance is then discussed as is power issues and negotiations with suppliers. Finally, digitalization of procurement for example in the form of e-procurement is discussed. Visitors from practice will contribute; emphasis on discussion of these practice cases from a theoretical perspective.

This course is part of the minor in Strategic Procurement

• Andersen, P.H., Rask, M. (2003), “Supply chain management: new organizational practices for changing procurement realities”, Journal of Purchasing & Supply Management, 9, pp. 83-95

• Arnold, U. (1999), “Organization of global sourcing: ways towards an optimal degree of centralization”, European Journal of Purchasing & Supply Management, vol. 5, pp. 167-17

• Cox, A. (2015), “Sourcing Portfolio Analysis and power positioning towards a “paradigm shift” in category management and strategic sourcing”, Supply Chain Management: An International Journal, 20(6), pp. 717-737

• Gelderman, C.J.; Semejin, J., (2006): “Managing the global supply base through purchasing management”, Journal of Purchasing and Supply Management, 12(4). 209-217

• Gonzalez-Padron, T.; Hult, G. T. M.; Calantone, R. (2008): “ Exploiting innovative opportunities in global purchasing: An assessment of ethical climate and relationship performance", Industrial Marketing Management, January, 37(1), pp. 69-82

• Hartmann, E., Trautmann, G., Jahns, C., (2008), “Organisational design implications of global sourcing: a multiple case study analysis on the application of control mechanisms”,Journal of Purchasing & Supply Management, 14, p. 28–42

• Heikkilä, J.;  Kaipia, R. (2009), “Purchasing Category Management – From Analyzing Costs to a Proactive Management Practice”, IPSERA Conference, Wiesbaden

• Hultman, J.; Johnsen, T.; Hertz, S. (2012); “An interaction approach to global sourcing: A case study of IKEA”, Journal of Purchasing & Supply Management, 18(1), pp. 9-21

• Jorgensen, F., Johansen, J. and Mikkelsen, O.S.. (2008), ‘‘Commodity Team Motivation and Performance’’, Journal of Purchasing and Supply Management, 18(4), pp. 42-57

• Kraljic, P. (1983), “Purchasing Must Become Sourcing Management”, Harvard Business Review, September, 61(5), pp. 109–17

• Luzzini, D.; Longoni, A.; Moretto, A.; Caniato, F.; Brun, A., (2014), “Organizing IT purchases: Evidence from a global study”, Journal of Purchasing and Supply Management, 20 (3), pp. 143-155

• Monczka, R. M.; Trent, R. J.; Petersen, K.J. (2006): “Effective Global Sourcing and Supply for Superior Results” CAPS Research

• O’Brien, J., (2012), “Category Management in Purchasing”, United Kingdom: Kogan Page Ltd.

• Rozemeijer, F. 2000. "How to Manage Corporate Purchasing Synergy in a Decentralised Company? Towards Design Rules for Managing and Organising Purchasing Synergy in Decentralised Companies", European Journal of Purchasing & Supply Management , 6(1), pp. 5-12

• Schiele, H.; Philipp Horn, P; Bart V. (2011): “Estimating cost-saving potential from international sourcing and other sourcing levers; Relative importance and trade-offs", International Journal of Physical Distribution & Logistics Management, Vol.41(3), pp. 315-336

• Smart, A.; Dudas, A., (2007),"Developing a decision-making framework for implementing purchasing synergy: a case study", International Journal of Physical Distribution & Logistics Management, 37(1), pp. 64 – 89

• Trautmann, G; Turkulainen, V.; Hartmann, E.; Bals, L. (2009),  “Integration in the Global Sourcing Organization – An Information Processing Perspective”,Journal of Supply Chain Management, 45( 2), pp. 57-74

• Trautmann, G., L. Bals and E. Hartmann. ‘‘Global Sourcing in Integrated Structures: The Case of Hybrid Purchasing Organizations,’’ Journal of International Management, 2009, 15(2), pp. 194-208

• Trent, R.J. 2004. "The Use of Organizational Design Features in Purchasing and Supply Management", Journal of Supply Chain Management, 40(3), pp. 4-18

• Quintens, L., P. Pauwels and P. Matthyssens. (2006), ‘‘Global Purchasing: State of the Art and Research Directions,’’ Journal of Purchasing and Supply Management, 12(4), pp. 170-181

• Voss, F.G.S. et al (2016), “Does global sourcing pay-off? A competitive dynamics perspective”, Journal of Purchasing & Supply Management, 22(4), pp. 338-350

• Wynstra, F. et al, (2017), “How is service procurement different from goods procurement? Exploring ex ante costs and ex post problem s in IT procurement”, Journal of Purchasing and Supply Management, forthcoming.