I attended an excellent meeting of the Madison International Trade Association (MITA) yesterday. The first speaker was from Deloitte and he described research his firm is finishing on Low-Cost Country Sourcing (LCCS) Strategies. Here was the findings on what attributes made companies top performers in sourcing.
- Dedicated LCCS team
- Established own International Purchasing Office (IPO)
- High percentage of local resources engaged
- Supplier selection process includes strong local market insight
- Have supplier development function to drive continous improvement
Deloitte works with large companies that have the resources to maintain dedicated LCCS teams and IPO's. Most small and mid-size enterprises (SME's) do not. OPSA is the solution for SME's as we provide the top four items above for our customers. We need to start a formal supplier development program and intend to do that soon.
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