What are the risks associated with global sourcing?

What are the risks associated with global sourcing?

Global sourcing can expose companies to risks like supply chain disruptions, quality control issues, and compliance challenges.

Can you elaborate on supply chain disruptions?

Certainly! Supply chain disruptions can occur due to political instability, natural disasters, or transportation issues, affecting timely delivery.

What about quality control issues?

Quality control issues may arise when sourcing from different countries due to varying standards and regulations, leading to inconsistent product quality.

How can companies mitigate these risks?

Companies can mitigate risks by diversifying suppliers, conducting regular audits, and establishing strong communication channels.

Are there any specific examples of companies facing these risks?

Yes, companies like Apple and Nike have faced challenges related to labor practices and supply chain disruptions in their global sourcing strategies.