Global sourcing is the deliberate search for goods, components or services across more than one country. Buyers use it to access capabilities, capacity, cost structures or materials that may not be available in one domestic market.
| Area | What to record |
|---|---|
| Decision | The sourcing plan should compare countries as well as suppliers. Currency, duties, freight, lead time, political exposure, quality infrastructure and payment routes can change the commercial result. |
| Evidence | Record the supply market considered, country assumptions, landed-cost model, supplier evidence and the route from order through delivery and payment. |
| Watch point | A lower factory price can produce a higher landed cost. Global sourcing therefore needs a country-level risk view before an individual supplier is awarded. |
When the term matters
The sourcing plan should compare countries as well as suppliers. Currency, duties, freight, lead time, political exposure, quality infrastructure and payment routes can change the commercial result.
Checks before approval
Record the supply market considered, country assumptions, landed-cost model, supplier evidence and the route from order through delivery and payment.
A lower factory price can produce a higher landed cost. Global sourcing therefore needs a country-level risk view before an individual supplier is awarded.
