Low cost country sourcing (LCCS) is the procurement strategy in which a company sources materials from countries with lower labour and production costs in order to cut operating expenses. LCCS falls under a broad category of procurement efforts called global sourcing.
Organizations are increasingly resorting to countries and regions where materials, products and parts can be obtained at low cost. By making use of LCCS, they can diversify their supply base and reduce the risks associated with supply chain disruption, and increase gross margins while improving efficiency.
Organizational corporate strategy identifies procurement as a major activity, leading to LCCS being the obvious choice for cost reduction. However, it is important to ensure that obtaining material at a lower cost does not compromise on quality or give rise to supply issues, in which case you will end up with additional costs that cancel any savings made.
We provide services that would help you analyze and arrive at ideal regions for Low Cost Country Sourcing. We work with you to identify the parts or materials needed and the appropriate vendors from low cost countries. Your preferences or legal trade restrictions will be taken into consideration while identifying target locations.
The countries we focus on are India, Indonesia and Vietnam, in Asia; Brazil, Mexico and Bolivia in the Americas, and so on. We have an efficient system of locating and identifying suitable vendors in line with your requirements, thanks to our experience and deep knowledge of the supplier base across the globe.
We also take care of vendor prequalification, float RFIs / RFQs, and obtain quotation on behalf of the client.
We provide you with a consolidated report on the options identified, the advantages and disadvantaged of each, and our recommendations, taking into account key factors like lead times, MOQ, logistics costs etc.
We assist in completing the actual purchase process from the start to the final step of getting the material delivered to your premises. Our years of expertise and understanding of the global scenario ensures that the process is smooth and the implementation professional.
Our services also include developing sustainable solutions to incorporate LCCS into your sourcing program. This is achieved by designing and implementing a procedure that would take the requirements and desired outcome into consideration. Our virtual offshore team would also provide hands-on support and manage the LCCS program for you.