Risks in Emerging Market Sourcing

Risks in Emerging Market Sourcing

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What is Emerging Market Sourcing ?

ď ą Emerging market sourcing business with more profit.

helps you to do

ď ą Emerging markets always have large territories and populations. ď ą Countries falling under emerging markets pursued economic policies which lead to faster growth and expand trade.

Risks in Emerging Market Sourcing

 Lack of Good Suppliers.  Supplier Maturity.  Hidden cost

Lack of Good Suppliers.

 Sometimes the suppliers are not so good.  Emerging economies are characterised with few extremely good global players.

 Not everyone gets the best suppliers.

Supplier Maturity.

 Supplier maturity is an important factor.  The suppliers who are in the acceptable band face lower maturity levels.

 Lack of maturity effects the product quality .  It finally affects the buying company.

Hidden cost

ď ą Sourcing in emerging market is done mainly to save the cost. ď ą Savings percentage range between 20% 45%. ď ą The hidden costs of improper risk analysis & management risks to lower the cost saving potential.

Dragon Sourcing Johannesburg 140 High gate, Sunny Road, Lakefield, Benoni, 1500, Gauteng, South Africa Tel:+27 (83) 230-9342 Email: contact.south-africa@dragonsourcing.com