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means to achieve business goals and objectives.
With advances in communications, transportation, infrastructures and business practices the
global world is a smaller "more flat" place with increasing opportunities.
Major reasons for global sourcing are:
- Lower product and service cost opportunities
- Customers demand OEMs to have global and local capabilities
- Shareholders demand improved profit margins
- Company cost reduction goals and objectives
- Reduce logistics and inventory cost by manufacturing close to global customers
- Improve market and customer responsiveness through supply chain diversification and
lower costs
- Competitors are increasingly globally sourced which creates business pressures