global

The primary goal of companies when employing global sourcing strategies is to reduce cost. Sourcing companies will take charge of identifying and screening of suppliers, management of supplier relationships and other important tasks. But before you make use of global sourcing companies or services, there are some important factors to consider. Lead Time While importing products from other countries may help cut costs, you also have to consider the lead time for global purchases. Global purchases generally have longer lead time compared to domestic purchases. You have to consider sea freight, air freight, and not to mention the time it takes to get clearance from customs. This is why using local sourcing services familiar with the nation’s customs and regulations will be essential to reduce the risk of unnecessary delays. Transportation Related to lead time is transportation. Global sourcing will most likely require you to use different modes of transportation. You may…