Global procurement refers to sourcing goods from the global market across country and geopolitical boundaries. Its goal is to exploit the efficiencies of the global market. These include lower skilled labour costs, lower cost of raw materials and advantages in tax treatment and tariffs in overseas countries.
Global procurement can be a complicated process with the necessity of navigating language and cultural differences as well as a different legal and regulatory environment. To help overcome these obstacles, global procurement services companies have been established in recent years that manage the global procurement process for other companies.
Their services support the needs of companies buying goods from international markets and can include market research on desired materials, supplier selection, developing supplier relationships, quality assurance, negotiating contract details, ensuring cost effectiveness, providing technical support and order tracing and expediting during shipping, among others.