Global Sourcing
Considering the global marketplace and its impact on supply chain management.
Level 1 Introductory: Demonstrates introductory understanding and ability and, with guidance, applies the competency in a few, simple situations. Can direct people to the appropriate source for further information.
BEHAVIORS
- Identifies the component costs of a product; raw materials, production processes, quality control and costs of manufacturing and distributing.
- Identifies the principles and methods for moving people or goods by air, rail, sea, or road in a global environment.
- Articulates major issues of the global sourcing environment.
- Identifies sources of information on low-cost country sources.
QUESTIONS
- Tell me about a time you helped analyze a globally sourced item.
Probing Questions
* Where did you find the information?
* How did you use the information?
* What information helped you in your work?
* What additional information do you think would have been useful for the analysis?
* How did your colleagues view the analysis?
Level 2 Basic: Demonstrates basic knowledge and ability and, with guidance, can apply the competency in common situations that present limited difficulties.
BEHAVIORS
- Identifies major issues of the global sourcing environment.
- Conducts a total cost of ownership comparison; including consideration of sourcing from a low-cost country.
- Analyzes direct or indirect distribution and requirements to support global sourcing for specific items.
- Identifies appropriate payment options associated with sourcing particular items globally.
- Articulates security issues associated with global sourcing from certain countries.
- Assesses the cultural and business ethics of potential source countries.
- Analyzes the logistical implications of various sourcing options.
QUESTIONS
- Tell me about a time you helped plan the purchase of a globally sourced item.
Probing Questions
* What criteria did you use for comparing costs?
* What risks did you consider in the sourcing plan?
* How did country costs factor into your analysis?
* In hindsight, what might you do differently next time?
* How successful the sourcing project?
Level 3 Intermediate: Demonstrates solid knowledge and ability, and can apply the competency, with minimal or no guidance, in the full range of typical situations. Would require guidance to handle novel or more complex situations.
BEHAVIORS
- Determines and considers barriers and enablers to global sourcing.
- Recommends direct or indirect distribution and requirements to support global sourcing for specific items.
- Determines the appropriate approach for sourcing products or product lines based on TCO analysis.
- Recommends when to use various means of payment available to importers/buyers.
- Identifies and considers critical business and social issues such as child labor when sourcing from low-cost countries.
- Identifies the impact of trade agreements such as NAFTA when determining sourcing options.
- Ascertains the impact of security issues such as hijacking, slowdowns and terrorism on specific sourcing options.
QUESTIONS
- Describe a time you planned a specific global sourcing project.
Probing Questions
* How did you decide what to analyze?
* Where did you seek the appropriate information?
* What key decision points led you to select the outcome?
* How did the end-users respond to your work?
* How did you keep meeting expectations on deliverables?
Level 4 Advanced: Demonstrates advanced knowledge and ability and can apply the competency in new or complex situations. Guides other professionals.
BEHAVIORS
- Estimates the impact of the macro environment (e.g., national politics, currency rates, oil prices, etc) on the viability sourcing under trade agreements (e.g., NAFTA).
- Identifies risks and challenges associated with certain supply chains and sourcing in areas such as China, India, Latin America and Africa.
- Calculates the impact of future currency exchange fluctuations.
- Assesses the need for currency hedges for global sourcing decisions.
- Assesses the role of intermediaries required to support a global sourcing scenario.
- Designs supply chains which support sourcing products from a specific country or countries.
- Articulates intellectual property implications of sourcing decisions.
- Adjusts strategy based on specific recent changes in the international environment.
QUESTIONS
- Tell me how you sourced a unique or complex product from the global marketplace.
Probing Questions
* What made it unique or complex?
* Describe the various elements included in your analysis?
* How would recent currency changes impact your decision?
* What advice would you give to another professional about sourcing a similar product?
* What was the biggest opportunity and risk in implementing a global sourcing solution?
Level 5 Expert: Demonstrates expert knowledge and ability, and can apply the competency in the most complex situations. Develops new approaches, methods or policies in the area. Is recognized as an expert, internally and/or externally.
BEHAVIORS
- Determines the organization’s approach to global sourcing.
- Establishes cultural and ethical guidelines related to sourcing decisions in a global environment.
- Determines the organization's risk management thresholds with respect to issues and challenges related to global sourcing policies and practices.
- Sponsors the creation of simulations to predict the impact of factors such as political change, currency fluctuations, market dynamics, oil price trajectories in determining global sourcing policies.
- Sets the modalities of making global sourcing decisions in the organization.
- Monitors changes in the international environment before they impact delivery.
QUESTIONS
- Tell me how you improved an organization’s global sourcing capability.
Probing Questions
* Which change had the biggest impact?
* How did you ensure the changes were sustainable?
* How have you dealt with resistance to the changes?
* What changes in approach have you seen?
* What outside factors do you monitor in determining future changes?