Low-cost country sourcing can bring savings of 20-25% of your current spend. Many companies that formerly exclusively sourced in China are now expanding their supplier network to other nearby countries according to the "China +1" strategies.
Hiring a "Low-cost country sourcing expert" and "management consultant" for Vietnam can bring you savings for various commodities like rubber, fasteners, castings, forgings, MRO, Sheetmetal and other categories. In 2022, production of metal and electronic products are runners.
These experts do the detailed market research on the drawings, specifications and RFQ package provided by you and will come out with an innovative strategic sourcing approach to bring savings for you. Low-cost country sourcing can help you in entering into anew price level due to cheap labor rates, compared to countries like USA, Europe and China. However, each country emerged as a strong destination for low-cost country sourcing, has his own specialties of commodities.
Experienced sourcing experts will use the following 9 steps:
- Supplier identification process
- NDA Signing process
- RFQ template designing process
- Target costing and True Cost structure analysis process
- Getting quotes from suppliers
- Supplier audit, rating and SWOT
- Rounds of technical & commercial meetings and negotiations
- Quote comparisons
- Final recommendation of suppliers
With these nine designed steps, experts will be able to achieve right set of target cost and savings for their clients. They use databases, Internet research and several other resources to tap right set of supplier audits for the client. In fact, Vietnam policies are very favorable for doing business with suppliers.
Low-cost country sourcing will add value and open new geographies for purchasing. The suppliers understand your sourcing needs and can offer you best prices.
We conclude here that it is necessary to combine sourcing with executive consulting. Our company GTEC is very well experienced in supply chain and various commodities. We are present in China, Vietnam and India, and therefore can benchmark and select best solutions according to your strategy, in tight communication with your purchasing staff at HQs.
If any questions and wishes, please contact me for a Zoom meeting in order to dig into details.
Karlheinz Zuerl
GTEC German Technology & Engineering Cooperation
Berggasse 4
96277 Beikheim
+86 134 8243 8080