Assessing the Global Dimension of Sourcing: An Exploratory Study on Italian Companies

Companies are paying a growing attention to volatility in the supply chain and many manufacturers are reassessing their global sourcing strategies. This paper try to investigate if multinationals are retreating their approach to a hemispheric, near-shoring model or are opting for a hybrid that maintains an international component. Furthermore the authors highlight the current challenges for Chief Procurement Officers facing risks and evaluating total costs along the global supply chain. The authors have reviewed both practitioner’s and academic literature, exploring the main trends in the global approach to supply markets and the trade-offs that could affect strategic sourcing decision in the near future. The main result of this research is in the fact that companies, in their approach to global supply management have shifted their focus from low-cost-country sourcing to “best cost” country sourcing or “best value” country sourcing, two approaches that evaluates a range of factors besides just labor costs.