<< 1 >>
Rating: 
Summary: A must-read for anyone involved in international procurement
Review: Dick Locke, founder of the San Francisco-based Global Procurement Group, is a leading authority in the field of international purchasing. He shares his expertise in his new book, Global Supply Management. His clear and concise writing demystifies the topic of international purchasing and presents it as a manageable business process. Locke concludes each chapter with a summary of key points and includes a number of "tests of understanding" throughout the book, both of which serve to reinforce the topic he has just covered. I also found Locke's practice of including references and resources at the end of each chapter to be more useful than a general compilation appearing in an appendix. That's enough about style; let's talk content. The book begins with an outline of some of the challenges that face international purchasers - challenges that even experienced domestic buyers may not be aware of. Locke then takes his readers through a detailed explanation of the cultural differences that affect international purchasing. In his approach to this topic, he doesn't provide a collection of cultural cliches, but rather draws upon the work of well-known researchers and applies their findings to real-life business situations. After identifying the cultural differences and their potential impact upon international commerce, Locke offers practical advice for overcoming these differences, and cautions about the dangers of stereotyping countries. He includes useful communication tips concerning the use of language, such as the importance of checking for understanding throughout meetings with others whose native language is not English. The book also covers the differences in legal systems and contracting practices that the international buyer should understand. The author explains how cultural issues will affect both the form and the content of international purchasing agreements. I found one of the book's real strengths to be its very thorough coverage of foreign exchange issues. Back in the early '80s, I was buying industrial parts from Germany and Italy and was using a French freight forwarder to handle the shipping details. In each case, we had contracted to pay in the seller's currency. Things worked out well, and we generally benefited from these arrangements. I would like to be able to tell you that we did so as part of a carefully crafted plan to manage our financial resources. However, the fact is that we were simply lucky due to the relative strength of the dollar at the time. By agreeing to pay in the sellers' currencies, we had assumed the "exchange risk," a concept that I understand much more fully after having read Locke's book. He dedicates a full seven chapters to foreign exchange issues and does so in such a way-with liberal use of his tests of understanding-as to make the topic understandable to even a nonfinancial manager. Customs and logistics matters also present their own sets of challenges to the international purchaser. As the book explains, a purchaser does not have to be an expert in these areas to be successful in global supply management. However, buyers do need to know the factors that are involved and be able to communicate with the experts. Three chapters of the book address these issues and give pointers that are designed to minimize the costs as well as the hassles and delays that an inexperienced international buyer might encounter. The book also provides solid advice on other choices that the international buyer must make, such as: paying the supplier (letters of credit vs. documents against credit vs. credit terms); purchasing channels (international purchasing offices vs. U.S. sales offices of foreign companies vs. buying direct from the factory); and supplier selection and management. The book concludes with three appendices that give answers to the tests of understanding, provide a supplier survey that can be used in the supplier selection process, and supply buyers' guides containing key information about 14 countries that are, or are about to become, major exporters to the United States. Locke has managed to pack a wealth of useful information about international purchasing into his book. I highly recommend Global Supply Management to anyone who is, or should be, involved in international purchasing. It is an excellent addition to a purchasing professional's strategic tool kit. -Brian Caffrey is president of Solutions Consulting Group, a Jackson Heights, N.Y., consulting practice that specializes in re-engineering and continuous improvement of purchasing and supply management processes. Contact him at bcaffrey@solcon.com. As published in Electornic Buyers' News, CMP Media Inc. June 10, 1996
Rating: 
Summary: Perhaps Locke wanted to be TOO comprehensive
Review: I just loved reading this book because I knew very few things about how to behave with international suppliers.The foremost target of this book is giving you good advices in order to deal with suppliers but the problem is that it's focused on the US point of view so it's rather difficult to explicitate this into you own point of view.These advices range from cultural differences to law and currency, aside from logistics;that's why when you've read the last page you feel a little confused about the real topic of it.
The book has really good appendix even if a little outdated.
Buying Dick Locke's book would be worthwhile only at 2 conditions:
-You are American
-You are absolutely new to Supply Management
<< 1 >>
| 
