Global Sourcing Benefits and Challenges for H&M

Topics: Procurement, Management, Global sourcing Pages: 18 (4702 words) Published: November 20, 2009
MO358 Strategic Supply Chain Management

Global Sourcing-
Benefits and challenges for H&M

Northumbria University, UK

Abstract
Global sourcing is a technique of strategic sourcing in the global strategy, which is an effective approach as a part of organization’s procurement section. The objective of global sourcing is to develop global efficiencies in the delivery of a product or service for the firms achieving a sustainable competitive advantage and this is an important weapon have been focused in the 21st Century. The well-known organization, Hennes and Mauritz (H&M) is one of the largest international fashion retail and production house with the great deal of businesses all over the world. In the today’s competitive market and ever-changing environment, what distinguishes an organization that succeeds from others? The article is to explore and focus on the benefits, challenges and requirements of global sourcing for H&M by the means of a literature study, case interview and discussion with the fashion merchandising manager. TABLE OF CONTENTS

Page
|CHAPTER 1 INTRODUCTION | | |INTRODUCTION.…………………………………………………… |4 | | | | |CHAPTER 2 BENEFITS | | |COST REDUCTIONS………………………………………………… |5 | |BETTER QUALITY………………………………………………….. |6 | |AVAILABILITY………………………………………………………. |7 | | | | |CHAPTER 3 REQUIREMENTS | | |3.1 SUPPORTED BY TOP MANAGEMENT……………………………. |8 | |3.2 BUILD UP LONG TERM RELATIONSHIPS…………………….…. |9 | |3.3 KNOWLEDGE OF FOREIGN REGULATIONS………….………… |10 | | | | |CHAPTER 4 CHALLENGERS | | |4.1 POLITICAL ENVIRONMENT………………………………………. |11 | |4.2 FINDING QUALIFIED SOURCES………………………………….. |11 | |4.3 QUOTA SYSTEM & EXCHANGE RATE…………………………… |12 | |4.4 RELATIONSHIPS BETWEEN COMPETITORS……………………. |12 | | | | |CHAPTER 5 RECOMMENDATRIONS ………………………………... |13 | | | | |CHAPTER 6 CONCLUSIONS…………………………………………… |14 | | | | |CHAPTER 7 REFERENCES AND APPENDIXES...

References: Jinsook Cho and Jikyeong Kang (2000), “Benefits and challenges of global sourcing: perceptiomns of US apparel retail firms, “International Marketing Review” pp544,
Laura M.Birou and Stanley E
R. M. Monczka and R. J. Trent (1991), “Global sourcing: a development approach”, International Journal of Purchasing and Materials Management, pp.2-7.
Laura M.Birou and Stanley E. Fawcett (1993), “International Purchasing Benefits, Requirements, and Challenges”, “National association of Purchasing, Inc” pp36
See J.C
H&M Annual Report 2007. Retrieved November 10, 2008, from http://www.hm.com
7.2Invitation Letter
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