Global sourcing is a sub-area of strategic procurement management and refers to globally oriented procurement.
A main goal of global sourcing is to provide procurement support for operational and strategic tasks within the company. Access to inexpensive sources of supply is, alongside technology acquisition and product range diversification, the most significant advantage of global sourcing. Global sourcing has now become an important competitive factor, which is defined primarily by price and quality. With the goal of procurement optimization or purchasing optimization, attempts are made to achieve savings through global sourcing.
Global sourcing is interesting for companies of all sizes and, according to experts, is still not used enough by medium-sized companies.
The geographical distances, the resulting limited personal interaction and the increased demands on logistics also pose risks for companies. The extent to which a company can exploit the potential of global sourcing therefore depends on its ability to meet these challenges.
See also:
Change Management; Fair Trade; Leadership; Product Management; Strategic Management
Reference to QET guidelines:
Q06 Change Management; Q09 Customers; Q14 Resources; E18 Fair Trade; E19 Ecology; T10 Suppliers