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Low-Cost Country Sourcing/Best-Cost Country Sourcing
Optimize your sourcing strategy by delving into SpendEdge’s procurement intelligence solutions to find the best and low cost country sourcing.
Macro factors such as increased globalization, increased political stability, increased consumption and consumer demands, and the integration of low-cost countries in the global markets have led to a more global approach to sourcing strategy. Low-cost country sourcing (LCC OR LCCS) and best-cost country sourcing (BCC OR BCCS) have emerged as two procurement strategies that many SMEs and large size organizations have proactively engaged in over the past few decades, providing ways to source materials and services with lower labor and production costs in order to lower operational expenses and increase productivity. Most of these LCCs have developed mature and stable supply chains that make them very strong candidates for market expansion due to their lower-risk profiles.
LCC and BCC sourcing regions include Asia Pacific, Eastern Europe, East Asia, Latin America, and countries like Mexico, Argentina, Brazil, Peru, China, Vietnam, Cambodia, Poland, Albania, Slovakia, Slovenia, etc. They offer a low-cost and high-value sourcing strategy, enabling companies to gain competitive advantages and expand operations in new and profitable markets. Many companies have also migrated their entire manufacturing processes offshore in an effort to increase production capabilities and reach scale at a much lower cost.
However, LCC and BCC require in-depth local expertise, local footprint, market analysis, location suitability, supplier analysis, risk analysis, local knowledge, strong category knowledge, and an understanding of local culture, regulations, trade barriers, tax laws, and emerging trends. Our LCC and BCC sourcing solutions provide insights into the supply market and supplier landscapes to address all these requirements and more, along with a focus on helping clients develop sustainable and long-term supplier relationship management. We believe that key to supply chain strategies is the relationship-building approach rather than the transactional approach suppliers and buyers form. As such, when exploring LCCS and BCCS we are analyzing suppliers based on their relationship-building capabilities, as well as a critical set of criteria outlined above. By obtaining detailed market intelligence information on the supply market and supplier landscapes from specialized databases, we assist clients in identifying and selecting best cost sourcing locations, and understanding prime cost advantages and the associated risk elements in their sourcing strategy. SpendEdge provides strong analytical and market research capabilities, proprietary data and information, and actionable insights.
LOW-COST COUNTY SOURCING
Typical Coverage Areas and Key Questions Answered
Typical Coverage Areas
- Identification of LCC/BCC Locations
- Assessment of sourcing suitability from LCC/BCC locations
- Trends in LCC/BCC sourcing strategy
- Demand supply situation in LCC/BCC countries
- Cost advantages of LCC/BCC locations/average savings
- Cost drivers and risk elements
- Trade barriers in LCC/BCC locations
- Peer group benchmarking
- LCC/BCC sourcing best practices
- Local supplier base analysis
Key Questions Answered
- Which are the key low/best cost sourcing locations?
- What are the key benefits of sourcing from these countries?
- Are there risks associated?
- Are the competitors sourcing from these countries?
- What is the landscape of the local supply base?
Petroleum Industry Client Leverages Procurement Market Intelligence to Pursue the Best Cost Country Sourcing Strategy
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Strategic Sourcing Solution Helps an Oil Field Equipment Supplier to Identify the Best Cost Sourcing Locations
Is Low Cost Country Sourcing the Best Option to Increase Your Economic Footprint?
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