Benefits and Challenges with Global Sourcing : A study of Swedish companies

Abstract: Global sourcing is an important strategy for Swedish businesses since it is a mean to gain competitive advantage which is important on the global market Swedish businesses act on. Consequently it is interesting to investigate the importance of the perceived benefits and challenges with global sourcing since these factors affect the global sourcing decision. Thus, the purpose of this thesis is to investigate how Swedish large businesses perceive the benefits and challenges with global sourcing. To be able to fulfil the purpose primary data was used which was collected through an Internet based questionnaire where the respondents were asked to rank and rate the importance of the benefits and challenges with global sourcing. The data collected was in a quantifiable form and thus quantitative tools were used to analyse the collected data. The result of the study regarding the benefits was that price clearly was perceived as the most important benefit, while counter-trade obligations were seen as the least important benefit. Regarding the challenges, longer lead times and cultural issues were seen as the most challenging aspects, while customs regulations, tariffs and quotas and discrimination from the supplier were perceived as the least important challenges. However since too few responses of the questionnaire were obtained, these results is not generalizable on other Swedish businesses than those that are represented in the sample.