Role of internet in international and global sourcing

Résumé du document

“For most companies, the ‘nirvana' of seamless online sourcing has yet to become a reality.” (Ross Tieman 2004). In fact since the last decade internet has became a major tool of our life, as well as in business. It appeared at the same time when global sourcing had begun to be generalized in more and more firms. A lot of new words appeared, such as “e-business”, “e-sourcing”, “e-economy” or “ICT alias information and communication technology”. The business world changed, and so did its tools, due to the growth of the internet, and globalization.

However, the question that emerges is, is the Internet really a wonderful tool? Global sourcing is a means whereby the firm becomes global in its strategy, and thus implements cost-saving, and finds the best offer for itself. Online sourcing is the process of sourcing via the internet. Have the business tools changed? What are the benefits of online sourcing? What is the role of the internet in global sourcing? In the first part of this document we will explain the growth of the internet, and its role in global sourcing. Then in the second part, we will research the benefits of online sourcing. To conclude, we will assess the statement of Ross Tieman.

In the last twenty years, the internet has grown steadily, and it appears today, like a multifunctional tool! In 2007, 61 per cent of the households had access to the internet in Great Britain (it is 36 per cent in more than 2002) and in 2006, 60 per cent of the users surfed the web every day, according to Great Britain's Online Statistics. In the European Union, 40 per cent of households had internet access at home in 2006. The Netherland has the biggest record, with 80 per cent of its households possessing internet access, as opposed to 8 per cent for Bulgaria's households (Eurostat 2007).

In fact internet permits people, not only to communicate with people everywhere in the world, but also to apply for jobs, find any information, buy goods as well as prepare travel itineraries, manage bank accounts, compare prices directly, and so on. The Internet has thus become an essential element of our life; not only in our private life but also in the world of business.

Extraits

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[...] Available at: [Accessed 5th November 2007]. Handfield, R. B. (1994), US Global Sourcing: Patterns of Development [online]. Available at: [Accessed 3rd November 2007]. Das, A. & Handfield, R. B. (1997) Just-in-time and logistics in global sourcing: an empirical study [online]. Available at: [Accessed 3rd November 2007]. W.P. [...]

[...] In fact thanks to internet, the firm can do all the stages of its sourcing online. Online marketplace An online marketplace is a website where suppliers and buyers can meet together and do business through internet. On an online marketplace, a supplier can show its business, what it can propose for the customers. It can answer to RFQ (request for quotation) from several buyers. Request for quotation is request that a company puts out when they want to hire contractors to perform a according to Wisegeek.com. [...]

[...] Handfield, 1997), internet permits to order goods faster but cannot decrease the time of delivery of products. So even with internet, the online global sourcing can appear in this case useless. Furthermore, the online sourcing is available in lot of areas but not yet in all sectors. In fact with internet a firm can find a lot of things in manufactured, pharmaceutical sector but it is not really developed for the moment in the following sectors: footwear, construction for example (see following graph). [...]

[...] Great Britain National Statistics, (15/03/2007), e-Business 7 in 10 UK businesses have a website [online]. Available at: [Accessed 27th November 2007]. Great Britain National Statistics, (28/08/2007), Internet Access 61% of households had access [online]. Available at: [Accessed 27th November 2007]. Great Britain National Statistics, (15/03/2007), Use of the Internet: 6 in 10 Internet users go online daily [online]. Available at: [Accessed 27th November 2007]. Eurostat, (2007) Consumers in Europe: Facts and figures on services of general interest 2007 Edition [online]. Available at: [Accessed 27th November 2007]. REIS, F. [...]