global sourcing



A procurement strategy in which a business seeks to find the most cost efficient location for manufacturing a product, even if the location is in a foreign country. For example, if a toy manufacturer finds that manufacturing and delivery costs are lower in a foreign country due to lower wages of foreign employees, the company might close the domestic factory and use a foreign manufacturer. See also outsourcing, international procurement organization (IPO)

Use global sourcing in a sentence

  • The internet has been a good way of Global Sourcing where companies are making their products at a cheaper rate so that consumers have a better idea of what they are really paying.

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  • We can't seem to be able to keep companies and factories here if our lives depended on it, and it does in a way. I guess we can just chalk it up to a receding economy and global sourcing

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  • You should try to have a good global sourcing team in place so that you can react to anything happening around the world.

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