End users today expect the prices they pay to decline each year, even if energy costs and other costs are rising. While companies now compete globally they must continuously find ways to reduce costs year after year. The potential rewards for winners continue to expand as undeveloped countries are integrated into the global market. Companies that don’t expand into new markets will see profitability and market share erode.
Low Cost Country Sourcing (LCCS) is a procurement strategy in which a company sources materials and services from countries with lower labor and production costs in order to cut operating expenses. Companies can realize significant savings when they successfully access and rely on low-cost sources in emerging regions.
Low Cost Country Sourcing cannot be effectively executed from a remote location in the US or Europe because presence in foreign supply market is essential for success.
These steps are difficult or even impossible to effectively exceute without a local presence.
We at EmpoweringCPO understand this aspect and help implement LCCS strategy by providing International Purchasing Office resources and services. Our approach focuses on lower cost as compared to high operating costs of captive International Purchasing Office which results in early realization of cost savings.
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