Global Sourcing

Global sourcing relies on a contractual relationship between the buyer (the focal firm) and a foreign source of supply. It is also called importing, global procurement, or global purchasing. Dell (www.dell.com) relies on a manufacturing network composed largely of independent suppliers located around the world. Exhibit 13.7 details the sourcing required for parts and components of a typical smartphone, from suppliers located worldwide.8

Exhibit 13.7

Global Sourcing for a Typical Smartphone

A diagram presents an example of global sourcing for a typical smartphone.

Source: scanrail/123RF

Global sourcing is a low-control strategy in which the focal firm sources from independent ...

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