What is Global Sourcing?
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. Global sourcing can help businesses tap into advanced skills, resources and technology not available in their home country.
Business process outsourcing (BPO) is a classic example of global sourcing. Several companies have set up their call centers in Asian countries, such as India and the Philippines, to benefit from the availability of low-cost, skilled labor.
Global sourcing strategy has become a matter of intense debate. With the onset of the COVID-19 pandemic and the resulting supply chain disruptions, many businesses that relied on a supplier based in China experienced unforeseen disruption. In several cases, the dependence on a single region impacted business continuity. The absence of alternative suppliers meant that some of these businesses had to temporarily suspend operations, while a few others closed permanently. Learn more about GEP’s procurement sourcing software and sourcing services.
World's Leading, Unified Source-to-Pay Platform for Direct and Indirect Spend Management
GEP SMART is an AI-powered, cloud-native source-to-pay platform for direct and indirect procurement. GEP SMART offers comprehensive source-to-pay functionality in one user-friendly platform, inclusive of spend analysis, sourcing, contract management, supplier management, procure-to-pay, savings project management and savings tracking, invoicing and other related functionalities.
Next-Gen, End-to-End Supply Chain Management Platform for the Connected Enterprise
GEP NEXXE is a unified and comprehensive supply chain platform that provides end-to-end planning, visibility, execution and collaboration capabilities for today’s complex, global supply chains. Built on a foundation of data, artificial intelligence and cognitive technologies, GEP NEXXE helps enterprises digitally transform their supply chains and turn them into a competitive advantage.
