| Over the past several years there have been three | | | | and establish new supplier relationships. |
| major developments in the evolution of global | | | | Some of these new supply sources will have less |
| sourcing. These are that more companies are | | | | advanced Information technology systems and an |
| pursuing a global supply base along with increasing the | | | | inability to share information easily. |
| number of countries viewed as a sourcing base and | | | | For those companies embarking on alternate supply |
| an increase in the quantity and variety of available | | | | sources they must perform more research and due |
| products. | | | | diligence on those overseas suppliers and must also |
| Some of the factors that are leading companies to | | | | look at incorporating local business culture into their |
| look at alternate supply sources (Globalization) include | | | | negotiation strategy. |
| the education level of workers available in other | | | | There are many different approaches to global |
| countries, the size of the domestic and import | | | | sourcing such as establishing an international Supply |
| markets and market liberalization. | | | | Management Office, the setting up of local joint |
| This market liberalization, led by China's admission into | | | | ventures where they work with an in-country |
| the World Trade Organization has assured | | | | enterprise to establish a presence. Some companies |
| commitments to reduce high tariffs. There is also an | | | | will look at finding a Trading Agent to act as a |
| abundance of low-wage labour available. China's | | | | sourcing broker. |
| average hourly manufacturing wage is 60 cents an | | | | Today, search firms especially those with a Strategic |
| hour with an able work force of 941 million. | | | | Procurement and Supply Chain focus are familiar with |
| Companies looking at these alternate supply sources | | | | companies that utilize these approaches and can |
| are then faced with several challenges in global | | | | provide those well qualified candidates no matter |
| sourcing among them is the requirement to identify | | | | which approach a company has in place. |