OVERVIEW

Every job function or task requires a decision and a direction. Whether the decision encompasses establishing a process for continuous functions, tasks, responsibilities, or those everyday unexpected occurrences, decisions need to be made. Judgment and evaluation are required to arrive at the best decision for budgets, costs, responsibilities, pricing, liability, distribution, packaging, when to purchase, when to ship, how to ship, what to market, what to warehouse, etc.

Each decision has a counterreaction to another element that coincides with the area in which the decision is made. One could decide to have product shipped via ocean to save on costs, yet the just-in-time inventory will be directly affected by this decision. How do you know if the decisions made for global procurement are the right ones? The answer comes with learning by trial and error or just by taking the time to dissect out all the elements involved that could/would have a positive or negative effect from a decision. If each decision is researched carefully and accurately "before" the contract or purchase order agreement is signed, the desired outcome may be achieved each and every time. Streamlining the individuals involved with decision making is the starting place. We have discussed the various individuals, departments, and responsibilities that must be involved with the international procurement business, but what if these departments are not linked together? In this chapter, we will discuss the various side effects to the decisions one can make and how to maneuver your outcome effectively to...