In recent years, sourcing and supply management has emerged as one of the greatest opportunity areas for retail business as well as for suppliers to leading retailers. At the same time, it is possibly also the one most prone to risk. This set of activities holds the key to improving service, product offer and overall profitability, and yet also provides some of the most difficult challenges of doing business globally. Certainly, a business needs to have winning products. Especially so with global companies who need to pick the best supply countries and the best suppliers to source from. Certainly negotiation and cost management are an important part in this context. But the only way to achieve these many "bests" is by ensuring that sourcing is well and truly integrated within a company’s overall business strategy, and that sourcing activities closely follow the direction set by overall business strategy. This paper attempts to identify sourcing strategies for global firms operating in the post WTO liberalized scenario to compete effectively.  The need for integrating sourcing options and aligning them with the overall business strategy with special reference to the textile industry has been brought forth.