SUSTAINABLE GLOBALSOURCING USING PROGRAM PERFORMANCE ANALYSIS MODEL

Abstract

In the unprecedented pandemic ruined economic situation it is important for sustainable organizations with long term strategy to source and resource their suppliers. The primary purpose of Program Performance analysis (PPA) is to provide a rigorous and complete understanding of the program cost and a rational forecast at different stage. Another purpose of Program Performance analysis is for an early indication of expected total cost of project. No research occurred about the influence of Program Performance analysis on global sourcing, this study will accommodate these factors and important global sourcing decision drivers like Contribution Margin, EBIT Margin, Net Flow of Revenue, Internal Rate of Return, Net Present Value and Payback after Start of Production. This research will use Should cost breakdown or Total Landed Cost breakdown as an input to calculate variables of Program Performance Analysis to determine long-term global sourcing decisions.