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Duty Paid), which requires the seller to bear the risks and costs, including duties, taxes and other charges, to deliver the goods directly to the buyer.
GETTING THE RIGHT HELP
Having expert help from someone who knows the risks and potential landmines that are part of global sourcing is extremely important, says Crupi. Zhang agrees.
Crupi believes that hiring professionals with the required expertise is the best solution to deal with global sourcing on an ongoing basis. It’ s possible to build in-house expertise by training existing employees, he says, but those employees will make mistakes as they learn, a necessary and unavoidable expense in order to build in-house knowledge. Working with a consultant is an excellent option, but is, in Crupi’ s view, the
ideal solution to a short-term need. If a company requires help in developing its global sourcing process, for example, using a consultant makes sense.
Zhang, on the other hand, sees the use of third-party global-sourcing service providers as the ongoing, cost-effective approach for companies that want to focus on their core competencies. Outsourcing global sourcing, she says, simplifies the process for such organizations.
Whichever option looks better for your company, it seems clear that the complexities and risks that are characteristic of global sourcing require expert handling. With expertise, risks can be largely managed, complexities mastered. Given the tremendous benefits of sourcing out of country, the costs for expertise – and to cover all of the potential risks that sourcing involves – appear to be well worth paying. pgraphis / Shutterstock. com
HAVE YOU VISITED THE NEW SCMA KNOWLEDGE NETWORK?!
Visit the new SCMA Knowledge Network, an online community exclusively for SCMA members.
Join your peers as they discuss solutions to supply chain challenges, their views on develop ing issues, and more!
Share your knowledge and the latest developments in the field.
Access is available for all SCMA members.
Visit community. scma. com and login with the same information you use for the SCMA Portal.
SUPPLY CHAIN CANADA • QUARTER 4 2016 • 13