Global Sourcing Strategies: Quality vs Price?

Online, August 1, 2010 (Newswire.com) - Norwich, UK - Outsourcing spending has continued to climb during the last decade, in good economic times and bad, and companies are continuing to turn to outsourcing for a competitive edge.

Executives agree that it saves money. And it is that undeniable fact that has led to a rise in both outsourcing and global sourcing during the downturn.

Now, globalization is not new. It has been around for decades. However, Brinley Salzmann, Director of Overseas and Exports for A|D|S, the trade organization advancing UK aerospace, defense and security industries, certainly agrees that there has been an outsourcing upturn over the last 20 months and has helped companies cut costs and stay in business during what has been "a period of decline."

Speaking with Manufacturing Digital, Salzmann described global sourcing as "a strategy for buying goods and services from countries other than your own so that you can access significant benefits". He said this is because different parts of the world will be at different stages in their development and so have different cost structures. "You can also access things that are in short supply in your own country," he added.

The benefits are obvious. First, you can get access to raw materials that may be scarce in your own country and that can lower your supply risk. Second, in utilizing global sourcing, you can get access to cheaper labor.

Read the full article and learn more about the Global Sourcing Strategies at Manufacturing Digital.