Low Cost Country Sourcing- Points to Consider

Low cost country sourcing (LCCS) is a strategy adopted by the manufacturing houses in the developed nations to minimise investments while attempting to maximise the profits. This is done by looking at opportunities of procuring materials from a low cost emerging nation rather than buying in the expensive local markets.

However, it is necessary for a business to analyze if the low cost country sourcing will really benefit them. This can be done by an in-depth study of the following factors

1. The material & incidental costs and tax structures:

Procurement costs may be lower in the emerging nations. It is important to check on the tax structures, import/export regulations, transportations costs that accompany the procurement's. Sometimes, all these could equal or out shoot local market costs.

2. Supplier capabilities and alternate markets:

What could be the financial implications if a supplier fails to meet the deadlines of delivery or there are delays due to some type of hurdles? Are you ready with an alternative supplier? Did you check the quality? Sacrifice in quality will have a detrimental effect on your products.

3. Risk factors:

Political unrest, frequent wars, and terrorism acts can interfere with a smooth supply of materials.
Using the services of professional procurement consultants can ease your workload to a large extent and improve efficiency. 

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Procurement Solutions India- Creating Way for Online Procurements

Digitalization and the changing consumer expectations have changed the way procurement is being managed. Procurement solutions India focuses on building an effectual and collective approach in the process of how a business manages its procuring goods and services.

Significant advances in strategy:

The focus is on distributing a fully compliant high-end technology that will get the customers a highly improved procurement delivery. You are in total control over your procurement with transparency and accountability.

Supplier relationship:

Procurement will be on the top of commodity and supplier management. The digital technology will provide organisations with prognostic supplier risk management (SRM) that will forecast any probable failure in supplier capability in honouring commitments.

Procurement via cloud:

It is necessary to have a cloud-based procurement system. The plan is to deliver a powerful feature-rich solution without the necessity of huge investments or procuring of expensive and time-consuming infrastructure.

The benefits:

The procurement solution India will enable a faster, flexible processing at minimal expenses for the clients. You will have a simplified, transparent and streamlined procurement process with sufficient supply management, process control, and approval machinery. It aims to reduce the order cycles and market time by online procurements. It will ensure faster procurements, superior management of bulk orders, and consolidate purchases.

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