Is your company considering bringing more of your sourcing onshore or changing to multisource?
Today’s post is by Ronald D. Southard, CEO at SafeSourcing Inc.
Is your company considering bringing more of your sourcing onshore or changing to multisource?
Low-cost company sourcing along with sole source commitments has had a negative impact on the supply chain during the COVID-19 Pandemic and that negative impact continues in our current economic environment. Many companies are rethinking these strategies in to limit their supply chain risks. SafeSourcing continues to field requests to assist in finding alternative and or multiple sources of supply in this current environment. Our SafeSourceIt™ Global Supplier Database is the source for many of these companies.
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).
If you’d like to learn more about how SafeSourcing can assist in helping your company find additional sources of supply, please contact a SafeSourcing customer services associate.
References: http://www.businessdictionary.com/definition/low-cost-country-sourcing-LCCS.html#ixzz2BIrG7ujm
