Barriers to Global Sourcing

As companies turn to global suppliers, they must be aware of both the opportunities and the threats present. Understanding world markets can be extremely difficult since each country is unique and complex. Therefore, global operations increase uncertainty and reduce control capabilities. Problems might arise from the number of intermediaries, customs requirements as well as trade restrictions. In addition, uncertainty could result from greater distances, longer lead times, and less knowledge of the market conditions. 

Monczka et al. (2005) have pointed out several barriers that are implicit in global sourcing  

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Explain global sourcing. What are the benefits and barriers to global sourcing ... 

An exceedingly shallow valley connects this point on the surface directly with a linear-type structure (0j = 112°, 62 = 0°) which is within 1 kJ/mol of the global minimum. Moreover, there is no energy barrier for passage from one point to the other through the valley. This finding led Latajka and Scheiner to propose that zero-point vibrational excursions away from the cyclic equilibrium structure might be the source of the nonzero dipole moment of the dimer [147], a notion later supported by the photoelectron spectroscopic work of Carnovale et al. [152]. 

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