Globally Right Source
Globally sourcing is a process of getting goods and services from markets of different geopolitical boundaries. It aims to exploit benefits such as cheap raw materials and low-cost but well-skilled labor and economic factors like tax reliefs and lower trade tariffs.
Companies use Globally Right Source when making decisions to procure a product or service labor that is internationally recognized but unique in the market. Therefore, it outsources it from the best provider and at the lowest price to maximize returns (Wursten, 2018). An organization is globally competitive when it can produce a product or service that is updated and made in the current trends at the lowest cost possible. The price per unit of the product reduces when the company undertakes economies of scale. This is experienced when the company is producing large quantities of a particular product. If a company engages in Globally Right Source for production, they can reduce the expenses they would have otherwise incurred. It also helps them get the best quality products through outsourced specialization.
Through outsourcing, the company gets to save time and money that would have been spent on production, such as telemarketing (Dhar & Balakrishnan, 2016). The efficiency of the business is improved as it involves taking new technology from another country to their own country. By choosing specialized suppliers, there is value-added since they use the latest technology, state of the art equipment, and processes. The company benefits from chances of value growth that are available outside the established supply chain and untapped markets since most communities are now global.
As the firm engages in Globally Right Source, a well-researched pre-qualification process is essential. Asking questions and conducting audits where needed is imperative for obtaining and validating supplier information. The damage in reputation or losses that can come from failure to do this may be irreversible.
Reference
Dhar, S., & Balakrishnan, B. (2016). Risks, Benefits, And Challenges In Global IT Outsourcing: Perspectives And Practices. Journal of Global Information Management (JGIM), 14(3), 59-89.
Wursten, H. (2018). Intercultural Issues in Outsourcing. Adviesbureau ITIM Intercultural.