The rise of globalization has occurred in order to take advantage of the relatively low cost of manufacturing in other countries and because of the relatively low cost of shipping good around the world. Global procurement refers to the way that organizations buy products that they require from companies that produce them in all parts of the world.
Global procurement services companies have been established to facilitate this process since there can be issues when dealing with overseas companies. These issues can include having to learn local ways of doing business, developing supplier relationships, doing business in a different language, tax and local regulations, shipping issues and documentation, hidden costs among others. Procurement services companies help with these issues and often include taking responsibility for finding suppliers and managing relationships with them as well as assuring the quality of the products delivered.