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Debunking Common Global Sourcing Myths

For a long time now, global sourcing has been a strategic business practice that allows companies to reorganize and relocate part of their functions to third parties, in a bid to boosting productivity and improving business functions. Outsourcing brings numerous benefits, such as efficiency and convenience. However, despite the many benefits, there are many misconceptions surrounding global sourcing, which cause most companies to always maintain all their functions in-house. As such, Axia Sourcing seeks to debunk the most prevalent global sourcing myths.

Reduced Costs is the Main Reason for Global Outsourcing

Firstly, reducing costs is just one of the many benefits of global product sourcing. For a long time, companies outsourced, because they believed it was only a way of minimizing expenditure costs. However, today, this has changed. There are many other reasons for companies, especially the manufacturing ones, to outsource for part components and more. Outsourcing saves time and gets the job done in a more efficient manner, among many other reasons, in addition to cost-cutting, of course.

Global Sourcing will Encounter Language and Cultural Disparities

Most first-time outsourcers believe that cultural and language barriers can be a big obstacle during the process of outsourcing. This is a mere misconception because renowned global sourcing and procurement companies, such as Axia Sourcing, are trained and skilled to handle the cross-cultural exchange. They hire professionals that are proficient in multiple languages such as English, and Chinese.

Global Outsourcing and Offshoring are The Same

Most of the time, the two terms outsourcing, and offshoring are used interchangeably, but they don’t mean the exact same thing. When sourcing for products globally, it means that you pay a third party, also known as a global sourcing company, to deliver the parts you need to complete your products. Offshoring, on the other hand, is moving some company operations to another country for reasons such as reduced labor costs and favorable economic conditions. The differences may be negligible, but to be clear, these two terms don’t share the same meaning, contrary to what many think.

You Will Not have Control Once You Outsource

This is one of the dominant global sourcing myths where companies tend to believe that they will lose control of the entire process. However, you can actually establish methodologies and checkpoints with your global sourcing partner to offer suggestions, get samples, and follow up on the job progress. This means that you still retain as much control as you would with your in-house team.

Global Sourcing is a New Concept

Many media outlets portray global sourcing to be a new business strategy. On the contrary, global outsourcing has been around since time immemorial, only that it wasn’t known as outsourcing and internet usage has made outsourcing more accessible.

Global Sourcing Yields Poor Quality

Quality should never be compromised whether you are outsourcing or producing in-house. When outsourcing, you have the opportunity of picking a provider that will deliver quality products. Therefore, you can use global outsourcing as a chance of getting the best in terms of quality.

The above may not be the only misconceptions surrounding global sourcing. However, with the right global sourcing partner such as Axia Sourcing, you can rest assured that your outsourcing needs are in the right hands. Contact us today for all your manufacturing parts and components sourcing.


Axia Sourcing, Inc.

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