Global Sourcing Logistics: How to Manage Risk and Gain Competitive Advantage in a Worldwide Marketplace

T

his chapter begins the process of dissecting the risks of

global sourcing, framing the issues, and providing nec-

essary benchmarking ideas for evaluating the importance of

global sourcing to an organization’s supply chain. Case stud-

ies are reviewed to examine various aspects of global sourc-

ing to be considered in an organization’s decision-making

processes.

Identifying the Risks

of Global Sourcing

The main reason that most companies source overseas is

to maintain or gain competitive product pricing. We know

this is true just by looking at how much of what we buy ev-

ery day at Sears, Wal-Mart, and Target originates in China,

Pakistan, or Mexico.