What does 'global sourcing' mean?

Global sourcing refers to the practice of sourcing from suppliers located in various countries in order to take advantage of cost efficiencies. This approach allows businesses to leverage the differences in labor costs, production capabilities, and resource availability across different regions. By strategically selecting suppliers from around the world, companies can optimize their supply chain operations, reduce expenses, and gain access to a wider range of products and innovations.

In contrast, sourcing locally is primarily focused on supporting community businesses and ensuring regional economic stability. It does not encompass the broader geographic scope that global sourcing does. The method of distributing goods domestically deals more with logistics and distribution channels within a country rather than the strategic sourcing of materials or products from international suppliers. Finally, while a strategy for reducing carbon footprints is valuable, it is not the primary focus of global sourcing, which centers on cost benefits and supplier capabilities across international markets.