Global Sourcing and Supplier Relationship Management: Strategic Imperatives, Challenges, and Global Best Practices

Abstract

Global sourcing has become a central strategic practice for firms seeking cost efficiency, access to specialized capabilities, and competitive advantage in international markets. However, the success of global sourcing strategies increasingly depends on effective supplier relationship management (SRM), particularly in an environment characterized by supply chain disruptions, geopolitical uncertainty, and sustainability pressures. This paper examines the strategic role of global sourcing and the importance of supplier relationship management in multinational enterprises. Drawing on international business theory, supply chain management literature, and relational exchange perspectives, the study analyzes key drivers, sourcing models, governance mechanisms, and challenges associated with managing supplier relationships across borders. The paper further explores digital transformation, risk management, and sustainability considerations in global sourcing and concludes with managerial implications and future research directions.