Pros and cons of global sourcing

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With the article on that you can read, it proves that global sourcing is on the rise. As said more and more, global sourcing can help companies reduce their cost by 10% to 35%, but the decision for sourcing require some considerations. It usually takes time, so it is advised to not rush your decision. To deliver goods and services, you can benefit from the global efficiencies throughout global sourcing.

Well, in reality, global sourcing is centralized procurement strategy of a multinational company. The global sourcing is known as the philosophy of business strategy that could coordinate the cost effective production and operation inputs. Do you already know why your business needs such this strategy, even more, of better growth of the business? The following are the advantages of global sourcing, so please take a close look to be sure that you also have to deal with it.

– Low manufacturing cost
– Seeking the advantages of alternate suppliers around the world
– Utilizing an efficient supply chain management systems
– Tapping resources and skills by which are not available in the home nation
– Start to learn the skill of global business
– See the competition efficiently

Somehow, you also must be aware that there will be disadvantages when you find the number of advantages of international sourcing. What’s that? Perhaps, there is no exposure to international culture. Not only that, you are more likely to get burdened by the hidden cost due to the different time zone and language reasons.

When the cost associated with global sourcing then becomes the next thing of your concern, there are some things to know, including:

– The origin of the country
– The import duty
– The risk of foreign currency
– Trade blocks
– And more

Even though learning how global sourcing influences your business ability in dominating the market is complicated, you will notice that it is so fun.