Global sourcing

• Overall


  Global sourcing is a broad term that refers to business purchasing supplies or services without being constrained by location

  Global sourcing as an operations strategy involves the sourcing of any business operations that gives the business cost advantages

  Benefits of global sourcing include cost advantages, access to new technologies, advantages of expertise and labour specialisation, access to other resources and the ability to operate over extended hours
• Challenges


  Challenges arise with global sourcing include the possible relocation of aspects of operations, the increased cost of logistics, storage and distribution, managing different regulatory conditions between nations, language and cultural barriers and the increasing complexity of overall operations when sourcing from diverse locations