Low cost country sourcing
(LCCS) has become a mandatory strategy for the businesses in all industries and
markets. Procurement has become the
major focal point for every business. Dwindling consumer base, competitive
pressure, high market demands, low-profit margins and the list of challenges
can go on and on. LCCS is one popular way to cut the costs across the supply
chain.
The
challenges you could face in low cost country sourcing. and why you need a professional consultant to handle the
work for you.
Removes
the barriers:
Communication
can be a major hurdle in many of the developing countries. the language,
culture, lifestyle etc everything is different. Using a third-party consultant
can remove some of the geographical and linguistic hurdles that the
manufacturing firms find in the LCCS markets like India, Thailand, China,
Brazil etc.
Supplier
capacity:
Identifying
the right candidates can be more challenging than it sounds. You must consider
the quality of material, the supplier capacity to deliver- the volume they can
deliver, can they scale the supply during peak times? You must have an
alternate plan ready in anticipation of the worst. A local consultant will be the best choice
for you.
Risk
factors:
You
must check the risks- political stability, economic unrest, labor, exchange
fluctuations, transportation, local taxation policies etc. A wrong move can eat
away all the savings you were hoping to make.
0 comments:
Post a Comment