Many overseas companies choose to source products from countries like China, Vietnam, Philippines, and India. This is because they can keep labor costs low, which increases their profit margins. It offers a huge competitive advantage in the global market.
Many companies take benefits of global sourcing, but it is a complicated process. There are challenges associated with global sourcing like foreign countries’ legal protocols, political instability, bureaucratic red tape, and cultural differences. These realities seem double taxing when you consider overseeing quality control, shipping, and foreign team management.