Global sourcing is the practice of sourcing from the global market for goods and services across geopolitical boundaries. Global sourcing is often designed to deliver products or services using global efficiencies. These efficiencies include low-cost skilled labour, low-cost raw materials and other economic factors such as tax breaks and low trade tariffs. Global sourcing is often associated with a centralized procurement strategy for a multinational, wherein a central buying organization seeks economies of scale through corporate-wide standardization and benchmarking.
Finding a rock-bottom price is not the problem, but landing great costs while avoiding distance, timing, quality, and language problems can be challenging. If you ignore or mishandle these risks, they can result in cost penalties and distracting inefficiencies.
The process will be started by setting the stage for the upcoming procurement project. It requires researcher to be open to innovative solutions without losing sight of the goals, focus on the goals by clarifying the scope and goals of the procurement projects. In the process, a team of purchaser to be set up to pursue the expected results of the procurement project. Companies also need to identify the core and non-core business activities, analyse customer and market needs, and identify competitors. The idea is to develop the firm’s business objectives, prospective markets and brand positioning.