The impact of commodity sourcing strategies on pricing models and profit margins in U.S. manufacturing supply chains

MENON, ARUN K (2025) The impact of commodity sourcing strategies on pricing models and profit margins in U.S. manufacturing supply chains. International Journal of Science and Research Archive, 15 (1). pp. 407-416. ISSN 2582-8185

In today’s rapidly evolving global marketplace, U.S. manufacturers face significant challenges in commodity sourcing, which directly influences pricing models, supply chain efficiency, and profit margins. This article explores the impact of various commodity sourcing strategies, including global sourcing, local sourcing, and just-in-time (JIT) practices, on the cost structures and operational efficiency of manufacturing supply chains. With geopolitical tensions, trade policy shifts, and market volatility influencing commodity prices, manufacturers must adapt their sourcing strategies to remain competitive. Drawing on recent case studies of U.S. companies like Walmart, Toyota, and Apple, this article provides insights into how sourcing decisions impact pricing models, risk management, and profit maximization. The findings suggest that hybrid sourcing models, diversification, and the integration of technology, such as AI and blockchain, can help mitigate risks and optimize profitability. By understanding these dynamics and implementing adaptive sourcing strategies, U.S. manufacturers can enhance supply chain resilience, manage costs, and improve customer satisfaction.