In fact, research suggests that low-cost country sourcing can provide total cost savings of 15 to 40 percent above the savings that can be generated by sourcing competitively from suppliers in the United States and Western Europe. Thus, China is a good choice!
But the move to low-cost country sourcing is not easy. It is not simply a matter of building a new factory or searching for new suppliers in a low-cost country. There are unique challenges and additional business risk that companies must plan for and mitigate, from cultural challenges to quality and on-time performance issues.
limited ability and energy to make the up-front investment,
small order quantity to be paid less attention to,
increasing operational cost caused by limited vendor knowledge and shop-to-floor QC,
lack of professional internal support on overseas logistics
Companies outsource the non-core business cycle and focus on the core competency in order to reduce costs and improve performance.
Since the middle of 90s’of the 20th century, we have witnessed the emergence of a new trend: the market for business process outsourcing (BPO) is booming and more companies are seeking to outsource a portion of their supply management operation to a trusted third party. We term this new development “supply management outsourcing” (SMO).
Consequently it is imperative to partner with the right type of SMO provider who should offer the required technology, knowledge and services across the entire supply management value chain to be effective.
Ethics: we conduct professionally complied with AIMR® (www.aimr.org) ethics.
Location: we are based in one of the low-cost countries-China;
Technology: we set up a professional technology support team for follow-up quality control;
Knowledge: we have domain and regional expertise with years’ sourcing experiences;
Services: we supply with far more flexibility a range of solutions tailored to customer specific requirements;
System: we have state-of-the-art E-sourcing system for customers to log-on real-time at anywhere which ensure information sharing and direct control on projects by clients.