Low cost economy sourcing
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With their capabilities and their quality continually improving, manufacturers in low cost economy countries are carving ever greater shares of worldwide markets.

Too few companies approach offshore sourcing in a strategic manner – it is viewed as an ad-hoc supplementary activity. Building a low cost economy sourcing capability needs clear vision and strategy. All key stakeholders should be engaged and organisations need to understand the complexity of the project and recognise the costs as well as the rewards.

PMMS has identified common barriers to effective offshore sourcing – local loyalties; perception of geographies such as Asia as being capable of only simple components or sub-standard quality; local cultures, working methods and bureaucracy; logistics challenges; home base issues; building different supply chains and supplier relationships.

Without a structured approach to understanding market dynamics, a company can sub-optimise, choose the wrong supplier/partner or even focus on the wrong geography.

Organisations need to develop real capacity. This is not just about raw cost; it should include design, product or service development, and quality control – an end-to-end supply chain. Neither is it just a hearts and minds issue but also one of capabilities and skill sets.

PMMS has real sourcing expertise and networks in the right locations. With operations in the UK, Europe, North America, Australia and the Far East we have strategically placed resources to provide end-to-end support for organisations looking to address low cost economy sourcing.

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