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Sourcing is defined as the process that involves the flow of manufactured goods and components from one place to another in the form of procurement. Global Sourcing means having production and or assembly performed in countries outside of a company’s home market (Dickerson, 1995, p. 294). Along with other demand driven sectors apparel retail industry is also at the forefront of the global sourcing trend. According to analysts (Dowing, 2002), Leading retailers in developed countries, such as walmart, and creefour, depend heavily upon overseas manufacturers as their source of merchandise.
In case of branded manufacturers like Liz Claiborne and Nike, which do not own their factories but use manufacturing partners to produce apparel products under their respective name brands. Supply Chain Characteristics of Global Sourcing Companies struggle to secure low unit costs on supply chains to serve the volume and economic growth. The countries that offer low wage rates and skilled labor became the major concentration for the industries like garments, engineering, software and ITES.
However, the basic characteristics of the global sourcing are as follows:
The investments in capacity should be less or should be supportive to the existing capacity.
The global outsourcing risks can be classified into 2 categories:
External risks
The basic characteristics of the global sourcing. (2020, Jun 02). Retrieved from https://studymoose.com/external-risks-new-essay
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