What are the risks associated with global sourcing?

What are the risks associated with global sourcing?

Global sourcing can expose companies to various risks, including supply chain disruptions, quality control issues, and geopolitical instability.

Can you elaborate on supply chain disruptions?

Certainly! Supply chain disruptions can occur due to natural disasters, political unrest, or logistical challenges, impacting timely delivery.

How can companies mitigate these risks?

Companies can mitigate risks by diversifying suppliers, investing in technology for better visibility, and developing contingency plans.

What role does quality control play in global sourcing?

Quality control is crucial as it ensures that products meet standards, reducing the risk of defects and customer dissatisfaction.

Are there any specific examples of companies facing these risks?

Yes, companies like Apple and Nike have faced challenges due to reliance on overseas suppliers, impacting their operations.