Thursday, August 28, 2008
Strategic Sourcing News
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- Universities explore procurement lessons learned from private-sector companies to achieve high performance (University Procurement Viewpoint)
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- Procurement for high performance: Global sourcing in the industrial products industry
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"Strategic Sourcing"
Global sourcing offers Dell unexpected boost
A shift in sourcing approach has helped Dell record strong profit growth, despite the global economic slowdown.
Dell, who announced higher than expected quarterly profits, said that its cost cutting measures and increased sourcing levels from China were beginning to have an impact.
The company will spend $23 billion sourcing components from China in 2008 – a figure that is expected to rise to $29 billion in 2009, as it looks to negate soaring prices in the US and Europe.
The company’s president of Dell Asia-Pacific and Japan, Steve Felice, also said that its sales outside of the US could account for two-thirds of its total revenue within five years.
Dell recently announced plans to cut almost 9000 jobs, although it expects to increase its headcount in Asia over the next 12 months.
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