Businesses dependent on global sourcing are facing hard choices in during period of pandemic such as the current Covid-19 situations with the supply chain disruptions. But in planning to mitigate the risks of similar disruptions in future, they confront many question that have no easy answers: How can risks relating to global sourcing be mitigated in a pandemic? Should companies broaden their supplier choices through more intensive global sourcing, or do more local or near-shore sourcing?
The Need for Global Sourcing
Global sourcing involves setting up production operations in different geographical location to serve various markets such as buying and assembling components or finished. products world-wide. Due to globalizing and technological advancement, the benefits of global sourcing to cut down cost and boost profits is a strategy widely practiced by companies around the world. However, the game of global sourcing changed dramatically during a pandemic.