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Procurement Domestically and Internationally

In: Business and Management

Submitted By joemgoba
Words 11273
Pages 46

Francesca Xiaoying Zhang

Bachelor’s thesis May 2012 Degree Programme in International Business Options of Supply Chain Management and Financial Management

2 ABSTRACT Tampereen ammattikorkeakoulu Tampere University of Applied Sciences Degree Programme in International Business Options of Supply Chain Management and Financial Management AUTHOR: Francesca Xiaoying Zhang Title of thesis: Procurement Domestically and Internationally The Case of Companies A and B Bachelor's thesis 45 pages, May 2012 This thesis aims to compare domestic and international procurement operations & business systems in company A and B. Company A is a multinational overseas company with domestic procurement and sales in China. Company B is a Finnish company with international procurement from Far East and sales in Nordic countries. Procurement is directly linked to business or organizations’ ability to deliver value in the market place. It is increasingly recognized by managers as a key business driver. Procurement decisions fundamentally affect business success because costs on purchased parts and services represent more than half of the sales revenues of most companies today. Companies having contacts of globally distributed supply base, are not necessarily limited to domestic purchase, moreover they can purchase internationally. Conducting and managing international procurement is more complex than undertaking domestic procurement. Some key aspects that differentiate international procurement from domestic procurement are that international procurement deals with a wider range of issues: trade between different nationalities, less mobility of factors of production, customer heterogeneity across markets and use of different currencies, governmental economic policy and political issues, culture, distance,...

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