Global sourcing is a procurement strategy where companies purchase goods and services from international markets to reduce costs by using cheaper raw materials and skilled labor from low-cost countries. While the main advantage is cost savings, global sourcing also allows access to new markets and follows what competitors are doing. However, currency exchange rates can fluctuate and documentation for international transactions may be complicated and time-consuming.

1. Submitted by: Anisha Dash

2. Global sourcing is a procurement strategy in which
a business buys goods and services from
international markets across geopolitical
boundaries to save money by using cheap raw
materials or skilled labor from low-cost countries.

3. The main advantage of global sourcing is the
cost-saving.
 International sourcing sees many foreign
manufacturers offer their services at a very
competitive price, especially in regions where
products are made at a low cost.

4. The currency exchange rate can fluctuate.
Documentation requirements for cross-border
processes may be time-consuming and complicated.
Restrictions are in place that may affect import or
export at either end of transactions.

5. Cost Reduction
Follow the competition
New Markets
Only Option

6. Product life cycles
Costs Change

7. The important thing about global sourcing is
that it becomes a very powerful tool to
leverage talent, improve productivity, and
reduce work cycles.