Global sourcing refers to the practice of obtaining goods, services, or resources from different countries around the world to take advantage of various factors such as cost, quality, availability, and expertise. It involves sourcing materials, components, or finished products from suppliers located in different countries, often in regions where production costs are lower or where specific resources or skills are abundant.
Global sourcing has become increasingly popular and feasible due to advancements in transportation, communication, and trade liberalization. It enables companies to tap into global markets, access a wider range of suppliers, and leverage competitive advantages in different regions. The primary objectives of global sourcing are usually to reduce cost, improve quality, increase efficiency, access specialized resources or technology, and expand market reach.