Low Cost Sourcing Destination Options

Global sourcing is one of the fastest growing trends in supply-chain management. The convergence of globalization, technology, and business strategy influences global companies’ supply chains, providing them with several options for sourcing suppliers, exporters, and traders in their respective industries.

Aside from products, global sourcing solutions also tap the services and skills being offered by different countries. One of the core reasons why this trend is being adopted is the cost efficiencies that they could gain, as well as product differentiation driven by the competencies and export quality of each country.

While the list of global sourcing destinations for products is quite long, we’ll be giving you an overview of five low-cost countries to help you find reliable suppliers and manufacturers of your products.

China

China is the world’s largest global sourcing location for sourcing suppliers, manufacturers, and wholesalers of various items, from clothing, footwear, consumer electronics and furniture, to medical devices. As the largest country in Asia and also one of the United States’ primary trading partners, its strength is in manufacturing most consumer goods at relatively low cost while offering buyers an abundant selection of suppliers. Key cities to check: Shanghai, Guangzhou, Shenzhen, Beijing, Dongguan, Dalian, Ningbo, Kunming, Qingdao, etc. See the mistakes what you can do and how to avoid scams when sourcing in China.

India

India is a sourcing destination for services which require IT skills or manpower. It is also a sourcing destination for industrial products. It is considered one of the low-cost country sourcing because of its low labor costs. The northern part of India is a hub for manufacturers in consumer electronics and cars; the southern cities specialize in steel, sponge iron, and clothing, and the western region in automobiles.

Brazil

Brazil is quite similar to China’s complex segmentation of consumer-goods manufacturing hubs. The country is one of the sourcing destination countries for leather goods, textiles, and fashion items, including clothing, footwear and accessories. It’s known as the fourth largest exporter of cotton fiber in the world, according to Ethical Fashion Forum.

Mexico

Mexico is catching up with the three top countries and exploring other options to be one of the top ones. Boston Consulting Group has published a study showing that the country’s operational costs (average electricity cost and natural gases) are lower than those in China—making Mexico a possible competitor for years to come, according to Business Insider.

Vietnam

Vietnam is known as the furniture sourcing destination. Besides furniture, global companies also take advantage of the low cost of labor, and thus Vietnam is becoming a hub for garment factories. In April 2014, Japanese brand Uniqlo moved some of its apparel production bases to the country, according to The Wall Street Journal.

Apart from the low labor cost, global sourcing solutions are prevalent in these countries because of economic stability and government support in developing key cities through improved infrastructure and import initiatives to attract investments.

Source: Tradegood.com

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