PMC106 - Global Sourcing

Outline info
Last revision date 2017-11-03 10:39:54.577
Last review date 2017-11-03 10:39:54.579

Subject Title
Global Sourcing

Subject Description
A critical component of any procurement strategy, this subject focuses on global sourcing. It is especially important today to integrate global sourcing decisions with inbound logistics and to consider total cost implications of global vs. domestic sourcing. The subject examines low-cost country sourcing both from the point of view of barriers and facilitators. From Africa and Asia to Europe and Latin America, the student will learn about sourcing around the world, including NAFTA sourcing in the US. and Mexico. This subject also deals with types of intermediates (customs brokers, 3PLs and trading companies) as well as freight and payment terms. The student will gain the ability to evaluate global sourcing alternatives and to communicate in a cross-cultural context.

Credit Status
This subject is the sixth of eight modules required by the Supply Chain Management Association of Ontario - SCMAO (formerly OIPMAC) for the Strategic Supply Chain Management Leadership Program toward the CPP (certified Professional Purchaser) designation.

Learning Outcomes
Upon successful completion of this subject the student will be able to:

1. Demonstrate an understanding of major issues in the global sourcing environment.
2. Conduct a total cost of ownership (TCO) comparison.
3. Identify and discuss critical business and social issues of sourcing from low-cost countries.
4. Identify important issues in the NAFTA sourcing environment.
5. Estimate or project the impact of national politics, currency rates, oil prices, etc. on the viability of NAFTA sourcing.
6. Determine the role of trade corridors and inland ports as facilitators to NAFTA trade.
7. Discuss the role and function of intermediaries in global sourcing.
8. Recommend direct or indirect distribution and (if indirect) a type of intermediary to support a specific global sourcing scenario.
9. Describe the purpose and characteristics of the Inco terms 2000.
10. Recommend when to use various means of payment available to importers/buyers.
11. Discuss the impact of currency exchange on global sourcing risk.
12. Discuss intellectual property and threats to it, including piracy and counterfeit goods.
13. Identify risks and challenges associated with supply chains and sourcing in China, India, Latin America and Africa.
14. Develop a supply chain methodology to support the sourcing of a product from a foreign country.

Cheating and Plagiarism
Each student should be aware of the College's policy regarding Cheating and Plagiarism. Seneca's Academic Policy will be strictly enforced.

To support academic honesty at Seneca College, all work submitted by students may be reviewed for authenticity and originality, utilizing software tools and third party services. Please visit the Academic Honesty site on for further information regarding cheating and plagiarism policies and procedures.

All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and shall not be tolerated. Information and assistance are available from the Student Conduct Office at

Accommodation for Students with Disabilities
The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Disabilities Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.


Topic Outline
This course consists of seven sessions:  six 3-hour sessions, and one exam in session 7, 4 hours in length.  The module objectives are covered in sessions one to six and the module ending examination is administered during session seven.  Topics covered include:

  • Low-cost Country Sourcing
  • NAFTA Sourcing
  • Global Supply Chain Intermediaries
  • Freight and Payment Terms and Security Issues
  • Sourcing Around the World
  • Strategic Global Sourcing

Mode of Instruction
Highly participatory using case studies, small and large group discussions, and lecture.  

Prescribed Texts
A Candidate Manual and a Readings Manual are to be purchased for this module - downloaded by the students at the beginning of the semester.  Students are directed to the following link to purchase the materials:

Reference Material

Required Supplies

Promotion Policy

Grading Policy
A+ 90%  to  100%
A 80%  to  89%
B+ 75%  to  79%
B 70%  to  74%
C+ 65%  to  69%
C 60%  to  64%
D+ 55%  to  59%
D 50%  to  54%
F 0%    to  49% (Not a Pass)
EXC Excellent
SAT Satisfactory
UNSAT Unsatisfactory

For further information, see a copy of the Academic Policy, available online ( or at Seneca's Registrar's Offices.

Modes of Evaluation
The evaluation criteria are set by SCMAO.  Please refer to their standards by contacting 416-977-7566 ext. 2149. 

Students must obtain a 60% average for course work, and achieve a minimum grade of 60% on the final exam to successfully complete the course.

Students are referred to the following website for Seneca College Library style guides, Academic Honesty Policy and Copyright guidelines:  http:/

For further information on evaluation and academic standing, see a copy of the Academic Policy, available online  ( or at Seneca’s Registrar’s Offices.

Grading is based on the following marking scheme:   

In-class Discussions 30%
Individual Mini-Report (1) 15%
Individual Case Report (1) 25%
Final Exam 30%

Please retain this course outline document for future educational and/or employment use.

Program Manager:
Emiliano Introcaso

Approved by: Academic Program Manager Emiliano Introcaso