Purchasing Management Association of Canada (PMAC)
Module 6 Global Sourcing
Assignment # 1 Individual Case Report “Barbara’s Blouses “ (Worth 20%) Due Date # September 17 /2012
Case study on Barbara’s Blouses
Answer 1 Some of the most important risks of buying overseas that one can avoid by buying from domestic sources are as follows:- 1) Dealing with the immature suppliers is the biggest obstacle or risk because by sitting too far you cannot know the supplier very well and you can do nothing except assuming things about the supplier so that can be avoided by buying from the domestic sources as you always have a chance to know the supplier in personal from the people in the market you are already in and the people who are already purchasing stuff from that supplier and other reliable sources. 2) Unreliability of delivery is also a risk which can be avoided by buying from domestic sources as you are never sure that the supplier will deliver you the goods at the required time on the other hand if the supplier is much closer to you than you have increased chance of getting delivery on time. 3) Unreliability of quality can also be a possibility that can cause a risk as you might not get the same quality you expected or ordered. 4) Foreign Exchange Risk which means fluctuations in the rate of foreign currency...
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