Low-Cost Country Sourcing

More Value, Less Time

Research says best-in-class procurement organizations source at least 20% of their enterprise spend from low-cost countries.

Whether or not your procurement team has experience in Low-cost Country Sourcing (LCCS), GEP can help you achieve more value more rapidly.

In fact, on average, GEP delivers incremental savings of 25% to 30% when sourcing from low-cost country sources, instead of domestic suppliers.

Local Knowledge is Essential

Our LCCS teams bring strong category-specific technical know-how, understanding of local policy trends, tax rules and trade-related regulations to the table.

This local knowledge is augmented with our industry-leading analytical capabilities, market intelligence and category expertise to help our clients minimize risk, maximize value and adopt Low-cost Country Sourcing with confidence.

Our LCCS services include:

Category Assessment

Spend Profiling, LCCS Suitability, Clean-sheet Costing and TCO Analysis

Market and Country Assessment

Country Profiling, Vendor Landscaping and Risk Assessment

Supplier Identification and Assessment

Supplier Research, Capability Assessment and Audits

Sourcing and Negotiations

Strategy Development, Bid Process Management and Negotiations

Execution and Implementation

Contract Execution, Supplier On-boarding, Logistics Plan Development, On-going Audits and Supplier Development.

GEP's category expertise in LCCS spans numerous direct and indirect spend categories from countries across Asia Pacific, East Asia, Eastern Europe and Latin America. Learn more about GEP's global presence or category expertise.

Learn more about low-cost country sourcing with GEP. 

SMART SOURCING

While often the prime driver of global outsourcing initiatives, low cost is just one important reason for globalizing your supplier base. Of increasing importance are a number of more strategic factors, including:

  • Creating more overall customer value for spend
  • Penetration of new growth markets 
  • Access to global talent and innovation
  • Alignment of procurement strategy to long-term corporate strategy 

At the same time, low-cost country sourcing presents some thorny challenges. Some locations may offer attractive pro forma savings – through reduced production costs – but the total cost might, in fact, be higher. 

Overseas transportation, currency fluctuations and import duties can quickly erode the benefits of low production costs and labor rates. And unstable or ineffective regulation, and unreliable suppliers or logistical issues can spike expenses, hurt product quality or even damage company reputation. 

To learn more about sourcing smart in low-cost markets, contact GEP.

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