CORe Exam Dumps | MNO, Inc. is a manufacturing operation that has recently expanded from domestic to global locations.

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HBX.CORE.v2024-11-30.q151
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Question 114/151

MNO, Inc. is a manufacturing operation that has recently expanded from domestic to global locations. MNO's supply management department is considering a plan to obtain raw materials from suppliers nearby each location. The organization currently handles its sourcing from headquarters, which provides coordination and support for all contracts. Which of the following strategies will likely be MOST useful to MNO's expansion efforts?

A. Identifying suppliers in the region and managing purchases locally

B. Using current sources to increase volume leveraging

C. Contacting current suppliers to determine if they have offshore distribution

D. Establishing a regional sourcing office that is centrally supported

Correct Answer: D

For MNO, Inc., a manufacturing operation that has expanded globally, establishing a regional sourcing office that is centrally supported would be the most effective strategy. This approach allows the company to leverage local expertise and proximity to suppliers, improving responsiveness and reducing lead times. At the same time, central support ensures that all regional offices align with the overall corporate strategy and maintain consistency in procurement policies and standards. This hybrid model combines the benefits of local sourcing with the advantages of centralized control and coordination.
References
* ISM (Institute for Supply Management). Global Supply Chain Management.
* CIPS (Chartered Institute of Procurement & Supply). Strategic Procurement in Global Markets.

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