What is the impact of globalization on sourcing strategies?

What is the impact of globalization on sourcing strategies?

Globalization has significantly transformed sourcing strategies by enabling companies to access a wider range of suppliers and markets.

Can you explain how it affects cost and quality?

Certainly! Globalization often leads to cost reductions due to cheaper labor in developing countries, but it can also introduce quality challenges.

What are some risks associated with global sourcing?

Some risks include supply chain disruptions, political instability, and compliance with international regulations.

How can companies mitigate these risks?

Companies can mitigate risks by diversifying their supplier base, investing in local partnerships, and implementing robust risk management strategies.

What trends should we watch in global sourcing?

Key trends include increased automation, sustainability practices, and the rise of nearshoring as companies seek to reduce dependency on distant suppliers.