In an era of faster product cycles, global competition and increased risk of supply chain disruption, corporate leaders do know how to use procurement–now often called supply management–as a competitive advantage. Purchasing and global sourcing can account for more than 50 percent of overall costs in many industries. Parivarta EXIM works with clients to make procurement a strategic operation and realize huge bottom-line impact.
Procurement Consulting involves the strategy called Low-cost country sourcing (LCCS), which is a procurement strategy in which we source materials from countries with lower labor and production costs in order to cut operating expenses.
The process of low-cost sourcing consists of two parties. The customer and the supplier countries like US, UK, Canada, Australia, and West European nations are considered as high-cost countries (HCC) whereas resource rich and regulated wage labor locations like China, India, Indonesia, Bolivia, Brazil, Russia, Mexico, and East European nations are considered low-cost countries (LCC). In low-cost-country sourcing the material (products) flows from LCC to HCC
The primary principle behind LCCS is to obtain sourcing efficiencies through identifying and exploiting cost arbitrage between geographies.