Which of the following is a potential risk of global sourcing in line control?

Which of the following is a potential risk of global sourcing in line control?

• A. Enhanced product quality
• B. Higher costs for local materials
• C. Increased complexity and risks
• D. Fewer supplier options available

Answer: (C)

The potential risk of global sourcing in line control primarily lies in the increased complexity and risks associated with managing a diverse supply chain across different countries. Global sourcing involves dealing with various suppliers that may have different regulatory environments, cultural practices, and logistical challenges. This complexity can lead to difficulties in communication, coordination, and quality control, as well as potential delays in the supply chain. Companies may face risks such as fluctuating currency exchange rates, political instability in supplier countries, and varying compliance with international trade laws. As a result, while global sourcing can provide cost advantages or access to specialized products, it often introduces a higher level of uncertainty and operational challenges that need to be effectively managed.

The potential risk of global sourcing in line control primarily lies in the increased complexity and risks associated with managing a diverse supply chain across different countries. Global sourcing involves dealing with various suppliers that may have different regulatory environments, cultural practices, and logistical challenges. This complexity can lead to difficulties in communication, coordination, and quality control, as well as potential delays in the supply chain. Companies may face risks such as fluctuating currency exchange rates, political instability in supplier countries, and varying compliance with international trade laws. As a result, while global sourcing can provide cost advantages or access to specialized products, it often introduces a higher level of uncertainty and operational challenges that need to be effectively managed.