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Risk minimized procurement in low wage countries

: Zentis, T.; Schmitt, R.


Chakrabarti, A.:
CIRP Design 2012. Sustainable Product Development : Proceedings of the 22nd CIRP Design Conference, held at the Indian Institute of Science in the city of Bangalore, India during 28-31 March 2012
Berlin: Springer, 2013
ISBN: 978-1-4471-4506-6 (Print)
ISBN: 978-1-447-14507-3 (Online)
Design Conference <22, 2012, Bangalore>
Conference Paper
Fraunhofer IPT ()

International product procurement is a risky business, one that can, in extreme cases, threaten the survival of a business. This is mainly due to the fact that the total costs of purchasing activities are insufficiently calculated and the company is inadequately oriented towards international procurement. For this reasons, two methods have been developed, with which companies can efficiently safeguard their procurement in international markets. The first method serves as a systematic forecast of purchasing costs. The second is a new risk identification and assessment method tailored to procurement needs. Project findings show that risks can be identified far better with the aid of these new user-friendly methods.