What is Global Sourcing in Retail? Explained

Global sourcing involves the practice of procuring products, components, or services from suppliers located around the world. Retailers engage in global sourcing to access a broader range of suppliers, take advantage of cost efficiencies, and diversify their supply chains. This strategy entails evaluating and selecting suppliers based on factors such as cost, quality, lead times, and compliance with ethical and sustainability standards. While global sourcing can offer various benefits, including lower production costs and access to specialized expertise, it also presents challenges related to logistics, communication, and geopolitical factors that retailers must navigate to ensure a smooth and efficient supply chain.