With the development and changes of the economy, for some multinational corporations, the current situation of the sourcing company's industry is constantly evolving and changing. Let's take a look at the changes in the operations of sourcing companies today.

For many multinational companies, the era of simply sourcing low-cost goods from China may be over.

In the future, companies will rely on a more diverse low-cost supplier base that spans multiple regions. The "China 1" strategy that was popular only a few years ago is likely to be transformed into the "BRIC n" strategy.

In addition, the one-way model of purchasing from the East and selling to the West is likely to give way to the networked model of supply centers in different regions, thereby rapidly penetrating into fast-growing emerging markets.

In view of these emerging global business realities, some procurement reports may need to redesign the entire production and procurement network.

the current situation of the sourcing company's industry


The labor and investment costs of sourcing companies continue to rise, and investment costs have also undergone tremendous changes over time.

In the past ten years, the manufacturing and construction industries have flourished in China and other low-cost countries, leading to unlimited demand for resources and pushing up the prices of raw materials. The increase in cost offsets any form of labor cost savings and reduces the overall cost advantage of low-cost countries.

Cost pressure from other sources: In addition to rising labor and investment costs, csourcing companies from low-cost countries must also consider the cost of dealing with environmental, health and safety issues; excessive supply chain costs for inventory holding And the impact of shipping and response time; and potential quality issues that may cause costly claims, returns, and discontinuation of production.

These increasing costs and constantly changing conditions have brought new challenges to sourcing companies. At present, many procurement companies have shifted their focus from low-cost procurement to "optimal cost" procurement.

Strategic advantages obtained through local and global competition. Many sourcing companies are shifting other links in the value chain beyond purchasing, such as research and development and production, to the most cost-effective areas to further develop their design capabilities and production networks. These developments can create a sustainable competitive advantage.

The procurement activities of the sourcing company in the local area and the resulting backward connections have a very important impact on the economic growth, technological progress and other economic development goals of the host country. In recent years, the strategic reorganization of the sourcing company and the changes in the procurement strategy mean It is necessary to make major adjustments to the existing supply chain connections. Whether more domestic companies can participate, and how to promote the development of procurement companies are issues worthy of attention.

The status quo of the sourcing company's industry As the world economy continues to develop, the development of some multinational corporations is closely related to the changes in the operations of sourcing companies.


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