Why Look to Lower Cost Region Production

Being competitive in the world markets requires a combination of quality, technology, price, marketing savvy and after-sale service. Purchasing has direct bearing on factors affecting the company's competitive position in the marketplace.

You should consider Lower Cost Region production if:

1. You want to reduce the cost of purchased materials by a minimum of 20%

2. Your current supplier isn't achieving at least 5% annual productivity and sharing some of that with you

3. Your current source (or the domestic industry) doesn't have the capacity to meet your production needs

4. You think you can't get to the next level of quality with your current supplier

5. You have a new product that requires a new skill set or technology that your current supplier can't offer