The alarming increase in consumer demands is compelling businesses to adopt new strategies to cater to their needs. SpendEdgea procurement market intelligence company, takes us through a journey where the variable costs of raw materials, insane competition, and globalization have led to the evolution of low-cost country sourcing (LCCS).
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Sourcing in China offers organizations many benefits. (Graphic: Business Wire)
Which are the best low-cost country sourcing hubs?
China, India, Vietnam, Thailand, Mexico, Turkey, and Eastern Europe are considered to be the most ideal sourcing destinations for many organizations across the globe, with China being at the top. Although there is a surge in cost, buyers and manufacturers continue sourcing in China because of the high ROI, ensuring up to 30% savings for companies sourcing products from them.
The reason behind China being the most attractive sourcing center is its beneficial government incentives, an abundance of low-cost labor, extensive infrastructural development, and industrial growth. China has seen extraordinary growth over the years and will likely remain one of the most sought after markets for manufacturing goods.
India is another top low-cost country sourcing base, especially for services that require IT skills, due to its low labor costs. The northern part of the region is considered a manufacturing hub in automotive and consumer electronics.
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Apart from China, procurement market intelligence experts at SpendEdge state that there is a multitude of upcoming players in Southeast Asia alone that are giving tough competition to China to grab the top spot for sourcing. Buyers and manufacturers need to fathom which country will suit their needs and give them a higher return because though China may have the competitive advantage over its counterparts, the benefits it provides may be lesser when compared to elsewhere.
But finding the right supplier and starting a long-term relationship is complex and challenging for manufacturers. Operational instabilities and risks, poor product quality, and long lead time that makes it difficult to respond to market trends are some of the hindrances that a buyer or a manufacturer will encounter. The team at SpendEdge, with their experienced market intelligence, provide sourcing best practices analysis coupled with real-time price tracking and precise forecasting of raw materials, services, and commodities to help procurement decision makers in choosing the best low-cost country sourcing and gain maximum ROI.
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SpendEdge shares your passion for driving sourcing and procurement excellence. We are a preferred market intelligence partner for leading Fortune 500 firms and other leading companies across industries. Our strength lies in delivering actionable insights that help sourcing and procurement professionals get the right information in the right format, without any unnecessary frills.
Our procurement market intelligence coverage extends across critical processes of sourcing strategy planning process and helps clients achieve more than mere monetary savings. Our procurement insights are well-defined to meet the information needs of the procurement organizations and are aimed at helping category managers extract hidden values out of sourcing teams, suppliers, contracts, and processes.
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