Global Supply Management: A Guide to International Purchasing

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 explai