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Managing global sourcing economically

In: International Sourcing

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  • Daniel Senft

Abstract

Considering Nicklisch’s quotation, the question of what makes up a company’s success and which goal factors are set by the enterprises when they consider outsourcing arise. Generally, one distinguishes between primary and secondary goals. The latter comprise, amongst others, the goal to achieve better qualities, to strengthen supply chains, to build a better image, or to benefit from subsidies. Although those might be only secondary, they are a necessary basis to meet the primary goals, which is, firstly, to be economic and, secondly, to derive as many benefits as possible from one’s efforts. The reason for that is that the enterprises are not judged according to the quality of their products, but according to the return on investments. Consequently, prices of on the stock exchange listed enterprises are rising and falling according to their economic efficiency and thus financers invest in those companies where they can achieve the biggest profits in relation to the existing risks.

Suggested Citation

  • Daniel Senft, 2014. "Managing global sourcing economically," Springer Books, in: International Sourcing, edition 127, chapter 4, pages 13-154, Springer.
    • Handle: RePEc:spr:sprchp:978-3-658-02780-3_4
    DOI: 10.1007/978-3-658-02780-3_4
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