Global Sourcing Benefits and Challenges for H&M

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 |
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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