Using low-cost country sourcing (LCCS) a company can purchase products from countries where labor and materials are cheaper, lowering operating expenses and improving gross margins. Additionally, the strategy enables companies to diversify their supply base and de-risk their supply chain, while increasing the quality of their efficiency.
Every industry understands the advantages of sourcing materials, parts, and products from countries and regions with lower costs. As procurement has become an integral part of corporate strategy, LCCS has become a priority as a cost-reduction strategy for procurement. As long as the cost reduction does not create quality or supply problems, the procurement savings might not materialize.
With ComplianceXL, you can identify all the best-buy parts and materials for Low Cost Country Sourcing (LCCS). In shortlisted items, the ComplianceXL team identifies vendors from low-cost regions. As a result, the client’s preferences or legal trade restrictions are also considered to determine target geographies.
As an example, in Asia, we typically target China, India, Indonesia, or Vietnam. In the Americas, it might be Brazil, Mexico or Bolivia.
ComplianceXL has a very efficient vendor identification process with a deep understanding of global supply bases from a variety of geographies. In addition to vendor prequalification, Our sourcing team prepares RFPs and RFQs, and acquires quotes on the client’s behalf. The ComplianceXL Team provides the Client with a consolidated report that summarizes all the information received. This report includes recommendations, pros and cons of the different supply options, and also considers key supply chain factors such as lead times, MOQ, logistics costs, etc.
We can also coordinate and facilitate the actual purchase process, all the way through to delivery of the materials on site, after the final negotiation and purchase decision by the Client. Our team of industry experts has a deep understanding of all industrial commodities, so the results are thorough and professional.
As well as providing LCCS as a tactical initiative, ComplianceXL also provides sustainable LCCS programs for clients, in which Consultant’s design, develop, and implement an ongoing program that integrates LCCS to a Client’s sourcing program, as well as providing hands-on support by creating a virtual ComplianceXL team offshore to manage the LCCS program.