Managerial Issues Associated With Global SOURCING: 

BUYING merchandise from overseas may be cheaper than from vendors located locally. Vendors that are in foreign country is where majority of the retailers get their merchandise and make a huge PROFIT globally.

Following are the managerial issues associated with global sourcing:

• Quality Control: It will take long time for merchandise from outside the country to reach to your store, KEEP in mind that shipping/air time while sourcing globally. These problems are more common in countries that are under developed or have no bilateral trade with your nation. Therefore, limited/no trade details regarding a country’s vendors are available.It can have following consequences:
• What will happen if the merchandise delivery is delayed?
• What will happen if the merchandise is of poor quality?
• What will happen if the merchandise is of superior quality but packaging, transport conditions are substandard?

Consequently, it becomes imperative on the part of retailers to assure the quality of imported goods through insurance, agreement with vendor or OTHERWISE.

• Building relationships with vendors: Building relationships with suppliers overseas is difficult but if made correctly, can do wonder for both sides. Domestic retailers look global sourcing not only for lower costs, but also to improve quality, prompt deliveries and develop innovations to keep them a step ahead of their competitors.

Managerial Issues Associated With Global Sourcing: 

Buying merchandise from overseas may be cheaper than from vendors located locally. Vendors that are in foreign country is where majority of the retailers get their merchandise and make a huge profit globally.

Following are the managerial issues associated with global sourcing:

Consequently, it becomes imperative on the part of retailers to assure the quality of imported goods through insurance, agreement with vendor or otherwise.