Understanding Global Sourcing

What is global sourcing?

• Sourcing goods and services from the international market

• Sourcing goods only from domestic suppliers

• A method to increase local production

• A strategy to reduce costs without international suppliers

What is one of the primary reasons companies engage in global sourcing?

• To increase costs

• To reduce costs

• To limit supplier options

• To enhance local sourcing

What are some challenges of global sourcing?

• Logistical complexities and cultural barriers

• Increased local production

• Simplified supply chains

• Reduced costs

What is a key aspect of the global sourcing process?

• Defining sourcing requirements

• Ignoring supplier capabilities

• Focusing solely on local suppliers

• Avoiding market research

What is the first step in the global sourcing process?

• Define sourcing requirements

• Negotiate contracts

• Evaluate suppliers

• Place trial orders

What is a potential advantage of global sourcing?

• Increased dependency on local suppliers

• Access to high-quality materials or expertise

• Higher production costs

• Limited market expansion

What is a disadvantage of global sourcing?

• Simplified logistics

• Cultural and communication barriers

• Reduced production costs

• Increased local sourcing

What does ongoing supplier management involve?

• Ignoring supplier performance

• Regularly monitoring supplier performance

• Only focusing on initial contracts

• Avoiding communication with suppliers

What is a key point to negotiate in global sourcing?

• Quality control practices

• Ignoring delivery timelines

• Avoiding price discussions

• Focusing solely on local suppliers

What is the role of technology in global sourcing?

• To complicate logistics

• To monitor and manage logistics and performance

• To reduce supplier options

• To ignore market research