GLOBAL OR LOCAL STRATEGY…
The main target of the material strategy is to create competition, therefore we always need to assure that the suppliers pool in the strategy are competitors and can compete for same business.
The comparison between the logistic cost to import material from abroad, including the risk of shortages due to long transportation, and the price advantage from those sources will define if the suppliers can compete globally or just locally.
This analysis is one of the first steps taken to define our material strategy properly, having as a result one global strategy (in a global scenario), or several local-to-local strategies (if just local).
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