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Why Low Cost Country Sourcing
- On selected components cost savings can be significant. Depending on the complexity, quality parts can be purchased at 15-25% below the price of the domestic market.
- Souring low margin parts to off-shore locations can free up capital to use for business that carries higher margins, therefore, avoiding expenditures for expensive new equipment.
- Blended price strategies can be offered to customers that are looking for lower prices but who must mitigate the inherent risks associated with longer supply chains. As more confidence is gained, additional savings become available.
- Temporary capacity can be put in place for minimal or no capital cost.
- Meets the competitive demand for lower cost components.
- Provides the opportunity to expand your product strategy with "handshake" parts or assemblies without investing in the internal capacity to manufacture every component required.
- Provides the opportunity to commodity manage a platform of parts with some produced offshore and some internally.
- Enables companies to strategically phase out of one product focus area and enter another while continuing to support their customers.
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