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The process of finding and acquiring goods and services. In international supply chains, this involves considering factors like cost, quality, and lead times across borders.

The amount of time from the start of a process until its conclusion. Longer lead times in international supply chains can increase the need for accurate forecasting and inventory holding.

Cost advantages gained by an increased level of production. In international supply chains, this can lead to sourcing decisions that favor suppliers who can produce large quantities at a lower cost.

The purchase price of an asset plus the costs of operation. When evaluating TCO for international supply chains, one must consider factors such as duties, transportation, and currency risks.

A series of pre-defined commercial terms published by the International Chamber of Commerce, used in international commercial transactions to clarify the tasks, costs, and risks associated with the delivery of goods.

The investigation or exercise of care that a reasonable business or person is expected to take before entering into an agreement or contract with another party. In global sourcing, this includes assessing potential suppliers' capabilities, financial stability, and compliance with regulations.

The smallest quantity a supplier is willing to sell. MOQs can affect international supply chain strategies, potentially leading to inventory holding challenges or the need to find multiple suppliers.

Any unforeseen event that interrupts the normal flow of goods and materials within a supply chain. Global supply chains are particularly vulnerable to disruptions caused by international issues like geopolitical tensions or natural disasters.

A business model where the supplier is responsible for managing the inventory levels of the products they supply. VMI can offer benefits such as reduced inventory in the international supply chain but requires high levels of coordination and trust.

A strategy where a company acquires or merges with other companies that are at the same stage of production. In international supply chains, this can lead to consolidation, increased bargaining power, and control over supply chain stages.

The process of developing channels of supply at the lowest total cost, not just the lowest purchase price. Strategic sourcing in international contexts involves complex analysis of global market trends and supplier relationships.

Procurement processes that respect environmental and socio-economic standards, such as labor rights and sustainability. International supply chains are increasingly adopting ethical sourcing to improve brand reputation and ensure compliance with regulations.

The risk of financial fluctuations due to changes in currency exchange rates. Managing this risk is crucial for international procurement as it can significantly impact the cost of goods sourced from different countries.

A document used to solicit proposals from potential suppliers in a procurement process. When sourcing internationally, RFPs must consider factors such as language barriers, cultural differences, and legal requirements.

The planning, execution, and control of the movement and placement of goods and services. International logistics can be more complex due to the need for navigating various transportation networks and regulatory environments.

The identification, assessment, and prioritization of risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events in the supply chain. International procurement often deals with an increased level of risk due to geopolitical and economic uncertainties.

The process of assessing and approving potential suppliers by quantitative and qualitative assessments. In international supply chains, this may include an evaluation of suppliers’ ability to meet foreign standards and regulations.

Adhering to laws, regulations, standards, and ethical practices. In international sourcing, compliance involves a multitude of local and international trade laws, which affect customs, shipping, and labor practices.

A tax imposed by a government on imported goods. Tariffs can significantly affect sourcing decisions in international supply chains as they may alter the final cost of imported goods.

The exchange of goods or services for other goods or services without using a medium of exchange, such as money. Countertrade can be used in international procurement when conventional means of payment are difficult or impossible.

The practice of having certain job functions done outside a company instead of having an in-house department or employee handle them. International outsourcing can reduce costs but also adds complexity to supply chain management.

An inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process. JIT in international supply chains requires highly reliable suppliers and logistics partners to avoid stockouts.

The relocation of a business process from one country to another. Offshoring can offer cost savings in international supply chains, but also brings challenges such as longer lead times and potential quality control issues.

Restrictions that result from prohibitions, conditions, or specific market requirements that make importation or exportation of products difficult and/or costly. NTBs in international supply chains can include quotas, embargoes, sanctions, and quality regulations.