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Increased global sourcing of manufacturing and service activities has been a prominent part of the restructuring of firms’ supply chains in the 1990s and beyond. Academics and consultancy firms have largely supported the view of global sourcing as one of the key drivers of superior performance. As we are now increasingly discovering, the drawbacks of offshore outsourcing – or, put differently, the advantages of vertical integration – have been underestimated or even neglected. In this chapter, we first discuss the need to balance sourcing levels and then how global sourcing levels must achieve a strategic fit with the environment. Finally, we synthesize these balance and fit perspectives to suggest how, over time, changes in the fit alter the required balance in global sourcing. From this synthesis, we develop a number of future research questions related to important conceptual perspectives on sourcing. For managers we provide indications of how they can achieve a balance and a fit of their sourcing strategies.

Although the literature on the strategic aspect of global sourcing is large, detailed studies on this procurement strategy from a process perspective are limited. This paper adopts the process viewpoint and examines the design and management issues associated with the global sourcing process based on a case study at a leading firm in the US aviation industry. The effectiveness of the company’s global sourcing process is evaluated, the design alternatives of the supply chain structure are compared, and the critical issues of efficient management of the process are summarized. Specifically, three logistics‐based criteria are developed to indicate the effectiveness of the transportation and distribution network. The paper also demonstrates that the process design can be assessed based on the dimensions of supply chain integration. Finally, a flow‐level matrix is developed to identify the critical issues of managing the global sourcing process.

Two of the most pervasive trends in purchasing management during the 1980s were the increased usage of global sourcing and the development of JIT sourcing. Both practices have become quite popular because of the significant competitive benefits they provide to the firms that successfully implement them. Despite their increasingly widespread adoption, these two sourcing strategies have traditionally been viewed as incompatible; therefore, most firms have not sought to integrate them in their efforts to enhance competitive position. Explores the potential of using logistics to facilitate the concurrent usage of global and JIT sourcing. Combines a conceptual discussion with an empirical study to understand better the opportunities to develop integrated global/JIT materials.

Increasing competitive pressure over the past 20 years has forced many companies to re‐evaluate their value‐added systems. This re‐evaluation has greatly amplified the managerial attention focused on purchasing. Indeed, many firms have begun to emphasize purchasing in their attempts to improve their competitive positions. Two advanced sourcing practices have been particularly important: global and JIT sourcing. This paper: 1) reviews the literature pertaining to these two sourcing practices, 2) considers potential competitive impact, 3) explores issues of compatibility, and 4) presents future research directions.

This research aims to investigate the impact of the current COVID-19 pandemic (C19, Corona) on trends of transcontinental sourcing as an extreme form of global sourcing. This study starts by observing that the sideward movement of international trade in the past decade can be differentiated into an increase in transcontinental sourcing and a relative decline of intra-EU sourcing. By differentiating between continental and transcontinental sourcing, this study gains insights into global sourcing trends and conducts a fine-grained analysis of the impact of COVID-19.

After analysing Eurostat statistics, the authors conducted 21 semi-structured interviews with companies from multiple industry sectors affected by a high share of transcontinental suppliers. Using the Gioia method, data from the interviews were structured. By examining the identified motives, challenges and solutions, the authors analyse the impact of COVID-19 on transcontinental sourcing.

The COVID-19 pandemic seems not to represent a turning point stopping global sourcing. The authors did not find evidence for a trend reversal. Most of the interviewed companies share the opinion that transcontinental sourcing will remain important or slightly increase in the future. Based on the analysis of their specific motives for transcontinental sourcing, it became clear that factors supportive as well as detrimental to transcontinental sourcing are levelling each other out.

To the best of the authors’ knowledge, this is the first study explicitly differentiating between continental and transcontinental sourcing as different types of global sourcing. While in European sourcing, a decreasing trend is already evident, as shown by our data analysis, there is a lack of investigations addressing transcontinental sourcing. In this study, the authors concentrated on motives, challenges and solutions of transcontinental sourcing. Extending beyond the immediate COVID-19 impact assessment, findings suggest that purchasing would benefit from treating transcontinental, remote sourcing as a distinct process from continental sourcing, particularly intra-EU-sourcing.

Investigates various benefits and challenges that retail firms perceive in global sourcing, and how those benefits and challenges differ in terms of firms’ demographic and managerial characteristics. Data were collected from 148 apparel retail firms. Three benefits factors (competitive advantage, quality assurance and service enhancement) and four challenge factors (logistics, regulations, cultural difference and country uncertainty) were identified. The types and levels of benefit factors a firm achieved from global sourcing were significantly different in terms of the product type and import volume. The challenge factors associated with global sourcing were also different in terms of the product type, percentage of imports, experience, and regions of sourcing. Information provided by this study expands our understanding of sourcing activities by apparel retailers which have significant presence in the global sourcing landscape in the USA.

Global sourcing can bring many benefits to organisations, but it can also expose them to a number of risks. The purpose of this study is to understand how managers assess global sourcing risks across the entire supply chain and what actions they take to mitigate those risks.

A multiple case study approach was used, involving 15 cases in seven different industries. Each case consisted of interviews with managers directly involved in the global sourcing decision, supported by documentary evidence. A cross‐case analysis was conducted to analyse patterns across different industries.

The study revealed that most companies do not have a structured supply chain risk management and mitigation system. Nevertheless they do use a number of informal approaches to cope with risk. The paper proposes that a multidisciplinary approach is required when dealing with global sourcing risks. It presents a classification of risks covering four categories: supply risk, process and control risks, environmental and sustainability risks, and demand risks.

The paper addresses a research gap concerning managers' approaches to assessing and mitigating supply chain risk in a global context. In this context, this study proposes a new categorisation for global sourcing risks and offers a characterisation of global sourcing risk mitigation strategies applicable to different industries.

Just‐in‐time (JIT) has been written about since the early 1970s. Studies have investigated the growth of JIT sourcing and its implications. However, there has not been as much discussion of the issues faced by companies involved in the pursuit of JIT sourcing in a global supply chain. Undertakes a systematic review of the JIT sourcing and logistics literature and highlights key findings. Notes a number of key problems and best practice issues in the area, followed by an empirical examination of the potential benefits of adopting JIT policies in global sourcing and logistics relative to non‐JIT global buyers. Compares results attained with those of a group of buyers employing JIT sourcing and domestic suppliers. Significant differences in a number of performance areas are found in the sourcing and logistics practices between companies following JIT practices with their global suppliers, as compared to companies not doing so. Finds that some aspects of domestic JIT sourcing and logistics are applicable across borders, while others are not. Concludes with a research agenda for future investigations in the area.

This study aims to identify and prioritize the key practices and strategies for effective global sourcing and supply chain management (SCM).

The study uses a combination of Pareto analysis and multi-objective optimization based on ratio analysis research methodology to analyze and establish the relationships among the identified key practices and strategies. Pareto analysis enables organization to prioritize organizational efforts and resources by focusing on the most critical factors.

The study shows that the “eco-friendly sourcing strategy”, “lean manufacturing” and “tool cost analysis” are the top critical practices and strategy variables for global sourcing and SCM, whereas the “risk management”, “procurement strategy” and “leverage digital solutions” are the critical practices and strategy variables.

The findings of this research can also assist organizations in making informed decisions to optimize their global sourcing and supply chain operations.

By using these methods, this research paper gives valuable insights into the critical practices and strategies that can enhance efficiency, mitigate risks and drive success in global sourcing and SCM. The subjects and elements this study identified will serve as a framework and suggestions for further theoretical investigation and real-world implementations.

As more evidence indicates that a corporation is very much defined by its purchases and benefited by its close partnership with the suppliers, the sourcing decision becomes increasingly important in the firm’s growth and profit. This paper synthesizes the available sourcing alternatives into four categories, namely multiple sourcing, single sourcing, single/dual hybrid or network sourcing, and global sourcing, and provides a comprehensive review of these purchasing methods based on extensive literature. Besides the discussion of the pros and cons, the paper focuses on the underlying factors that determine the preference and suitability of each sourcing option. In addition, with the note that numerous companies are switching to do business on a global basis, we attempt to use China as an example to examine global sourcing from the standpoints of both buyer and supplier.