Organizational approaches to managing international sourcing

Abstract

Discusses analysis of the organizational structures utilized to conduct international purchasing activities which was undertaken at 24 multinational corporations. The majority of the corporations studied had decentral‐ ized purchasing organizations and all had corporate purchasing staffs. Four basic approaches were found: (1) totally decentralized; (2) co‐ordinated; (3) totally centralized; and (4) separate international purchasing group. Within this overall framework there were several forms of staff assistance for helping operating units effectively to accomplish their international purchasing goals. This assistance included foreign buying offices, trading companies, and international staff specialists. There was also a common philosophy which indicated the necessity of worldwide sourcing.

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