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Writer's Choice - Assignment Example

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For this purpose organizations have invested in trainings, laboratories, and audit as well as monitoring production to ensure that it follows specified…
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Writer's Choice

Download file to see previous pages... This is because companies produce their goods to target the global market and sourcing is a core consideration (Lechner & Boli, 2011)
Future global sourcing will depend on negotiated worldwide performance parameters, a globally incorporated market system as well incorporation of global professionalism especially in marketing, human resource, engineering and source groups.
One effect of sourcing globally is that companies no longer source components but rather source in systems and services. This is important to companies because they not only have to produce affordable goods for the global market, but the goods need to be of right quality and standard. Companies which source systems therefore have an easier way of controlling quality and price.
Another effect of global sourcing is that as much as companies would still prefer traditionally cheaper markets of China, Eastern Europe and India, they cautiously check the unknown costs that arise from sourcing in these markets (Lechner & Boli, 2011)
The articles relate to the week’s topic because they fulfill the objective of evaluating how organizations can control cost of production by ensuring that standards and quality are observed when sourcing from a global market. This results in production of quality goods and services which meet global standards and consumed by a global market.
Prior to buying of a system or even a product, purchasers usually would be interested in finding out an estimation of the total of direct as well as indirect charges included in a specific transaction. The comprehensive figure is what is called a Total Cost of Ownership.
One main challenge that organizations go through while implementing a Total Cost Measurement system is the length of time required to come up with a comprehensive Total Cost Measurement System. This is because organizations have to go through ...Download file to see next pagesRead More
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