Is there still such a thing as low-cost country sourcing?
Today’s post is by Ronald D. Southard, CEO at SafeSourcing Inc.
Is there still such a thing as low-cost country sourcing? Let us hope the last couple of years is not the best example of how this is supposed to work. If so, you will have to not rely so heavily on sole source opportunities.
Low-Cost Country sourcing (LCCS) is a procurement strategy in which a company uses foreign companies with lower wages to produce resources for manufacturing. By finding companies countries with lower labor and production costs that operate on leaner budgets than domestic operations, a company may be able to acquire materials and reduce operational expenses. Low-cost country sourcing is a part of a company’s global sourcing strategy. It is also called outsourcing or international procurement organization (IPO).
SafeSourcing is an eprocurement company that operates across multiple industries. As such we have specific experience in almost any commodity, service or capital related spend. Our SafeSourceIt™ Global Supplier Database of over 457,000 suppliers is your source for all EU, Pacific Rim and Americas supplier information. To learn more or have SafeSourcing assist you in your low-cost sourcing, please contact a SafeSourcing customer services associate.