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Levels of offshore sourcing according to Trent and Monczka (2005)

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Level 1: Domestic buying but often progressing toward international purchasing because of
a lack of suitable domestic suppliers.
Level 2: International purchasing usually limited or performed on an ad hoc or reactive
basis.
Global Sourcing and Logistics
Level 3: Making international purchasing part of the firm’s sourcing
strategy but the strategies are not well coordinated across worldwide
buying sites and usually focus on price improvements.
Level 4: Requires worldwide information systems, personnel with advanced knowledge and skill sets, an extensive coordination and communication mechanism and an organizational structure that supports global integration and an executive leadership that can clearly articulate a global vision.
Level 5: This integration, which often involves the coordination of design and procurement
activities, occurs during the development of new products and technology as well as during
the sourcing of items or services to fulfill existing demand. This is the highest level of global sourcing.

Titany answered the question on November 24, 2021 at 12:52

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Levels of offshore sourcing according to Trent and Monczka (2005)

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