Domestic sourcing refers to procurement of raw materials, parts, sub-components or assemblies within the same country as either final assembly or retail sale. Domestic sourcing remains one of several available options within a strategic sourcing methodology.
While low cost country sourcing appears to be in "vogue", particularly for products and components where timing and quality are not as critical, domestic sourcing remains in wide use where reliability and supplier partnerships are more important than individual component price.
While local sourcing is often less complicated than global sourcing, there are 8 key tips to successfully leveraging this type of sourcing.
Current practice in high technology industries show an average of a 65/35 mix of domestic sourcing to global sourcing. Finding the right mix depends on the industry and where the vulnerabilities to supply chain cost management exist for a given company.