Global Sourcing: Myth Versus Reality

Posted: 05/20/2020 - 23:01
Global Sourcing

Global sourcing offers numerous benefits. Unfortunately, due to misinformation, many companies overlook global sourcing as a solution and miss out on potential productivity benefits. In this article and the complimentary infographic, we will explore and debunk some of the most persistent myths about global sourcing.

Myth 1: With So Many Global Outsourcing Partners Available, It’s OK to Pick the First Provider That Stands Out to You.

Reality: While there is indeed a vast selection of global sourcing partners available, take the time to conduct due diligence and to seek a partner that specializes in the services, products, and applications for which you need manufacturing support.

Just like domestic manufacturers, global sourcing manufacturers specialize in different areas. Assemble a list of options, compare and contrast pros and cons, and contact facilities (or a sourcing partner), if you need more information.

Myth 2: To See the Greatest Benefits of Global Outsourcing, Choose the Lowest-cost Partner.

While global sourcing can yield significant cost benefits, the lowest-cost facility is not necessarily the right choice. Be sure that a facility can meet the capacity, timing, and quality requirements that you and your end customer require.

Also, keep in mind that lower costs are often not the only reason for using global sourcing. A global partner can provide expanded capacity, faster turnaround for large orders, and the ability for you to focus on core processes while components are manufactured elsewhere.

Myth 3: Language and Cultural Barriers Detract From the Effectiveness of Global Sourcing.

In today’s global industrial manufacturing landscape, facilities maintain personnel well-versed in numerous languages and cultures, to offer the best possible service to manufacturing partners.

In addition, global sourcing agencies are available to help bridge any communication gaps. With this level of service in place, you can feel confident that your questions will be answered and that you will have total transparency at every step of the process.

Myth 4: Global Sourcing and Offshoring Share a Stigma.

Offshoring is different from global sourcing in that it involves moving core production processes to a different country — a practice that continues to have a poor reputation. In global sourcing, you maintain domestic facilities, operations, and personnel.

You can turn to global sourcing for supporting services such as additional capacity, component manufacture, assembly, warehousing, and more. Global sourcing keeps processes onshore — avoiding the stigma associated with moving operations elsewhere.

Myth 5: The Cost Benefits of Global Sourcing Are a Trade-off For Lower Quality.

Global sourcing partners now maintain stringent quality control processes and work with you to assure that their production is up to the standards you and your customers require.

Contracts often contain quality clauses. You and your representatives will be able to monitor outsourced processes as needed. You will have access to traceable quality data for your records and for any customers who may require additional documentation. The myth of poor quality from outsourced manufacturers is no longer true.

Myth 6: One Must Find a Trustworthy Global Sourcing Partner Because You Will Have No Control Over Outsourced Operations.

While it is true that a trustworthy sourcing partner is beneficial, you do not have to worry about a loss of control over production operations upon signing the contract.

Due to higher quality expectations, multilingual personnel and a changing competitive landscape, you can monitor every detail of outsourced operations and can step in as needed. With this control in place, an outsourced production will be up to the same standards kept in your facility.

The accompanying infographic shares even more myths about global sourcing, as well as information about some of the myths described above.

Axia Sourcing is a global sourcing service provider.

About The Author

Tim Baker's picture

Tim Baker is Director of Marketing and Strategic Development at Axia Sourcing, a global sourcing service provider. He has more than 25 years of experience in the industry and focuses on procurement, manufacturing and distribution.