A change is afoot in low-cost sourcing dynamics

Emerging markets are no longer type-cast as low-cost sourcing


KevinOMarah.jpgSCM World’s chief content officer, Kevin O’Marah, recently released his ‘Top 10 Supply Chain Facts of 2014’.

Noteworthy was O’Marah’s fact number five: low cost countries are no longer mere sourcing prospects – they are increasingly sought-after trading partners.

O’Marah’s Top 10 is based on the fourth annual ‘Chief Supply Chain Officer Report’, for which data was collected by SCM World from 1 068 respondents.

Of the respondents, fewer than 17% view emerging markets primarily as low-cost sourcing opportunities, 34% are looking to emerging markets mainly for new sales growth, and 48% equally seek sourcing and sales in emerging markets.

“It seems fair to say that the era of ‘low-cost country’ sourcing is close to over. Globalisation from here on out is very much a two-way street,” O’Marah contends in his Top 10.

But what does this change in low-cost sourcing dynamics have in store for African supply chains, especially those with ties to low-cost China?

While costs remain a focal point for organisations seeking to increase their margins, China’s competitive position as a low-cost sourcing destination is changing. New competitive forces are shaping China and other low-cost countries’ competitiveness.

JavierCunat.jpgJavier Cunat, Associate Director of The Beijing Axis, spoke to SmartProcurement Review about the implications of China’s transformation for global supply chains.

Continue reading

Share this Post

Leave a Comment

Your email address will not be published. Required fields are marked *

Leaders Profile

Movers and Shakers in Procurement

Upcoming Courses

No event found!
Scroll to Top