Now I am going to discuss the issues of global sourcing. What things you should be taken considered and what are the pros and cons by purchasing the products from suppliers outside the North America.
We know your corporate objective is GROWTH and your strategy is to focus in narrow and differentiate market. You can provide unique product mix that other competitors cannot. As your company growth, you need huge amount of SKU to meet your customers’ needs. And now, you found a corporate global sourcing initiative. Global sourcing is one thing that we all thought it will be beneficial to TSC in somehow. Let me analysis the pros and cons of purchasing products from suppliers outside the North America. * (Since you are expending your company, your customers will increase relatively. TSC might need much more products’ mix to in order to meet the customers’ needs. Now global sourcing helps. It can provide more diverse products from suppliers outside the North America. You may not need to worry about find the right product to your customers.) * (We assume your current suppliers who are within the North America also purchasing their products from suppliers outside the North America. If TSC purchases products from suppliers outside the North America, it will cut off the Middle-man’s who are the suppliers TSC currently dealt with which imply the cost of the products will decrease at the same time. But here, I am just saying the cost of the product itself, not including freight.)
This two paragraphs are talking the reasons of choosing global sourcing supply chain. We can judge their strategy. * As Matt said, if TSC is becoming a national retailer, TSC will be the significant buyer for the domestic suppliers and your domestic suppliers know you are purchasing products from suppliers outside the North America. And now, domestic suppliers may want to negotiate the