What challenge does logistics pose when sourcing products from overseas?

Study for the CIPS Introducing Procurement and Supply (L2M1) Test. Engage with flashcards and multiple choice questions, each question includes hints and explanations. Ace your exam with confidence!

Sourcing products from overseas often introduces various complexities into supply chain management. This is primarily due to several factors, including but not limited to cross-border regulations, varying international trade laws, language barriers, and differences in logistics infrastructure among countries. Managing these complexities requires careful coordination and an understanding of global logistics, which can increase the difficulty of ensuring timely and cost-effective delivery of products.

These challenges can involve navigating customs procedures, managing international freight forwarding, and addressing potential disruptions caused by geopolitical factors or natural disasters. Companies must also be prepared to handle variations in lead times and the associated risks linked to long-distance transportation.

In contrast, lower transportation costs, improved scheduling, and faster shipping times are typically seen as benefits of efficient logistics and may not accurately reflect the challenges of managing an overseas supply chain. Instead, the primary concern for procurement professionals is ensuring they can effectively manage the intricacies and variables associated with logistics in a global context.

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