Factors of Low Cost Country Sourcing

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Low Cost Country Sourcing Strategies
By http//www.dragonsourcing.com/
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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.
• Also your business will gain more profit.

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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

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Financial and Potential Risks

• Financial risks are always there.
• Potential Risk is also there.
• Therefore depending on a single country or
  region for sourcing could be a very bad idea.

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Vigilance Issues

• Monitoring issues may be there.
• This issue come when a company sets up office in
  a different region.
• It may turn to lead non productivity.
• Quality assurance may also slip.

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Hidden Cost

• Different region have diverse culture.
• It may hamper the business economies.
• Thus the hidden cost must be properly identified.

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