Low Cost Country Sourcing Drives Growth and Savings

The evolving consumer demands, and the fierce competition globally are compelling organisations to reconsider their sourcing strategies. They seek the best quality services at the lowest costs from their suppliers. One of the strategies is low cost country sourcing. Choosing the right consultant services will give a big boost to the organisation's business objectives. They analyse and plan well-defined strategies and implement them keeping in consideration, how the plan will impact and help the client achieve their long-term goals.

Why low cost country sourcing (LCCS)

LCCS can drive in anything between 20% to 40% cost savings on the landed costs. This is because sourcing of raw material and other initial resources are done from the emerging markets.

India is the fastest growing economy and the most preferred destination for sourcing. Low cost country sourcing in India has received momentum because of various reasons that include

*  Low labour costs

* Abundance in talent both skilled and unskilled

* Government initiatives like Digital India, Make in India, Skill India etc.

* Big market and strong development in technology

* No language barrier with use of English in a big way

* Liberal taxation policies

The LCCS countries are a hub for the best procurement costs. India leads them all having gained preference over China and others by global organisations. 

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Transfer of Knowledge and Efficiency Through Procurement Outsource Services India

Outsourcing procurement is an important strategy for most organisations as it helps achieve a reduction in spend and improves cost savings. The procurement outsource services India brings in their expertise and market intelligence to help the companies transform their procurement process while delivering concrete results.

Benefits of outsourcing:

Subcontracting procurement to a professional service will lead to a significant improvement in the procurement exercise and eliminate the need to create a separate division or invest in resources to manage the spend.

The specialists will work within your organisation. They analyse your existing capacity and potentiality, build a new procurement strategy, assess the system and usher in new technology to improve delivery.

You will soon discover agility, substantial improvement in cost-savings, efficiency, sustainability, and long-term gains.  Your team will witness a dramatic change in the approach toward procurement.
Group purchasing

The procurement outsource services India negotiates and finalises services in bulk from the vendors and suppliers for multiple clients. Your organisation can access services and goods at discounted prices lower than the market price
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Customised model:

 If you have budget constraints, you may outsource critical services to the specialists. They will create a hybrid service model and offer support to the areas you find challenging.  

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6 Step Process Taken by Procurement Consultants

Procurement consultants carry out process of choosing vendors, calling for quotes, negotiations, defining contracts and payment terms, quality and quantity before the actual purchase is done. Unlike the normal purchasing that is done at retail stores, procurement is carried out differently and done after a lot of strategic planning.

There are a few steps that the procurement consultants in India apply to make sure the clients get the best deals, at the most competitive prices, and improve their savings and productivity.

What the procurement consultants do:

1. Analyze the existing process:

Study the current practices, the spend, identify the team, stakeholders and redraft a new strategy.

2. Assess the requirements:

Test the decisions, estimate the demand, do a market scrutiny, call for fresh quotes.

3. Design a strategy:

Draw a fresh strategy and design, get approval from client, announce in the market and call for supplier quotes, tenders, etc.

4. Draft a contract:

After negotiations, write a contract draft for approvals from both- client and the vendors/suppliers.

5. Finalize the contract:

Redraft the contract as per any revisions proposed and accepted by the two parties. A final formal contract is drawn. The two parties sign the contract.

6. implementation stage:

The consultants keep a close watch on how the process is taking shape, suppliers performance, quality tests etc before the first procurement is executed.

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