Low-Cost Country Sourcing/Best-Cost Country Sourcing

Empowering you to select the most optimal cost sourcing locations, by understanding prime cost advantages and the associated risks.

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Overview

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. 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 low-cost and high-value sourcing, 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 relationships with their suppliers. 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. SpendEdge provides strong analytical and market research capabilities, proprietary data and information, and actionable insights. 

LOW-COST COUNTY SOURCING

Disruption to supply markets during Covid-19 has impacted many SMBs and large corporations. Our Sourcing and Procurment Intelligence service is assisting clients with Covid-19 Impact Assessment.

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
  • 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?

Results & Testimonials

The information was very useful to the category strategy, especially the best sourcing practices model.

VP Procurement, Leading BFSI Firm

I was impressed with the quality of market analysis information, procurement strategies comparison, pricing insights and also the non scope added material regarding Covid-19 impact on Fuel procurement. These information have been very useful for us to decide best procurement strategy.

Sourcing Director, Leading F&B Company

We have used multiple platforms over the years. The team feels that SpendEdge is the best overall choice compared to competitors.

Associate Director of Procurement, Leading Technology Firm

Case Studies

Petroleum Industry Client Leverages Procurement Market Intelligence to Pursue the Best Cost Country Sourcing Strategy

Identifying Best Cost Sourcing Location for an Automobile Manufacturer

Strategic Sourcing Solution Helps an Oil Field Equipment Supplier to Identify the Best Cost Sourcing Locations

Featured Blog:

Is Low Cost Country Sourcing the Best Option to Increase Your Economic Footprint?

Featured Press Release:

Use of Industrial Valves in Oil and Gas Industry Driving Global Demand

Featured Blog:

US Metal Enclosures Market: Are Your Spend Management Goals Attuned to the Current Market Trends?

Our Expertise

Category Market Intelligence

Transitioning your category procurement strategy beyond cost-saving and into a strategic function of the organization.

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Supply Market Analysis

Enabling companies to achieve procurement maturity, enhanced savings and reduced risks through supply market intelligence.

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Low-Cost Country Sourcing/Best Cost Country Sourcing

Empowering you to select the most optimal cost sourcing locations, by understanding prime cost advantages and the associated risks.

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Benchmarking

Developing a competitive edge and winning strategy through supplier, price and procurement best practice benchmarking.

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Spend Analysis

Optimizing an organization’s spend, by effectively identifying, categorizing, visualizing and evaluating in to order identify savings across the supply chain.

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Cost Modeling and Should-Cost Analysis

Obtaining visibility of costs across the value chain to make informed suppliers, pricing, risks and budget-related decisions.

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Total Cost of Ownership (TCO) Analysis

Estimating the true cost of doing business, including all direct and indirect costs as the foundation for price negotiations.

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Supplier Risk Analysis

Leaning on timely proprietary and secondary market research to evaluate the supplier risk profile in order to mitigate risks.

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Supply Chain Risk Assessment

Future-proofing operations and profitability against predictable and unpredictable surprises across the supply chain.

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Sustainability Practices Assessment

Transforming businesses and procurement practices with a focus on the triple bottom line value generation: financial, environmental and social.

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Commodity Price Forecasting

Activating data-driven procurement planning, assessing pricing-related risks, and supply chain disruptions due to price volatility.

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Category Management

Transitioning your category procurement strategy beyond cost-saving and into a strategic function of the organization.

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Supplier Negotiations

Positioning sourcing and procurement teams for winning negotiations with current and prospective suppliers.

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Contract Management

Increasing confidence and efficiency in contract negotiation and execution, through analysis, insights and best practices.

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Low-Cost/Best-Cost Country Sourcing

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SUPPLY MARKET ANALYSIS FOR A METAL MANUFACTURING COMPANY HELPS ACHIEVE ANNUAL SAVINGS OF $15 MILLION

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