Global sourcing involves looking for goods and services outside ones borders. It is a procurement strategy in which firms try to find the most cost-efficient place globally for manufacturing goods. According to purchasing and procurement professionals, companies should be able to source both inside and outside their national borders. They are then subsequently better able to compete.

Making reference to any company in the automative industry, answer the following questions.

Question B

Should your company decide not to opt for global sourcing, critically explain the different ways in which efficient purchasing can contribute greatly to the overall profitability and prosperity of your company?