Low-Cost Country Sourcing

Research says best-in-class procurement organizations source at least 20 percent 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 percent when sourcing from low-cost country sources, instead of domestic suppliers.

We’ve had a very successful sourcing partnership with GEP. They’ve helped supplement our procurement team with subject matter experts who worked closely with us to get us focused.
– Corporate VP, Strategic Procurement, B. Braun

Knowing Your Market

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

Smarter Sourcing

While often the prime driver of global outsourcing initiatives, low cost is just one important reason for globalizing your supplier base. A few more important strategic factors include:

  • Creating more customer value for overall 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. 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 us today

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.

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. Our low-cost country sourcing services include:

  • Spend Profiling
  • LCCS Suitability
  • Clean-Sheet Costing
  • TCO Analysis
  • Country Profiling
  • Vendor Landscaping
  • Risk Assessment
  • Strategy Development
  • Bid Process Management
  • Negotiations
  • Contract Execution
  • Supplier Onboarding
  • Logistics Plan Development
  • Ongoing Audits
  • Supplier Development

 

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