Importance of Global Sourcing
What is Global Sourcing?
Global sourcing is defined as the strategy of procuring goods and services from global markets, i.e., markets located in other countries. The rationale behind global sourcing is to build a resilient supply chain while leveraging regional efficiencies related to certain products and services
The major reason to choose global sources for purchasing goods and services are low labor costs, tax benefits, subsidies, low tariffs, and several others. The benefits of global sourcing include the availability of advanced skills, better resources, and the latest technology that may not be available in the home country.
Diversification in global sourcing is also a popular strategy where instead of one supplier in one country, businesses opt to purchase their products from multiple vendors across different nations. This strategy became popular after the COVID-19 pandemic wrecked global supply chains.
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