Factors of Low Cost Country Sourcing

Low Cost Country Sourcing Strategies By http://www.dragonsourcing.com/

What is Low Cost Country Sourcing ?

Procurement is mainly done in order to get good quality material. ✔

Low cost country sourcing is the only way to get this. ✔

This type of sourcing is mainly done to reduce the operating cost of the business. ✔

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Also your business will gain more profit.

Low Cost Country Sourcing Strategies The main advantage of global sourcing strategy apart from cost advantage are tapping the skills that may not be available in the domestic market. Also the cost of the labor is very low. The labors are capable of manufacturing any kind of product. Thus the key factors of global sourcing strategy are : Financial and Potential Risks. ✔ Vigilance Issues ✔ Hidden Cost ✔

Financial and Potential Risks

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Financial risks are always there.

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Potential Risk is also there.

Therefore depending on a single country or region for sourcing could be a very bad idea. ✔

Vigilance Issues

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Monitoring issues may be there.

This issue come when a company sets up office in a different region. ✔

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It may turn to lead non productivity.

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Quality assurance may also slip.

Hidden Cost

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Different region have diverse culture.

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It may hamper the business economies.

Thus the hidden cost must be properly identified. ✔

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