The promise of reducing costs by buying products from markets with cheaper labor has long tantalized business. Most large buyers, both industrial and retail, have gone through a learning curve to build strong capabilities and get the best deals. While mid-sized companies have tried to emulate this, they have had much less success, resulting in substantial missed opportunities for savings.
To succeed, it’s first helpful to see how companies frequently fail by understanding the stages of moving procurement activities to lower-cost countries. And then secondly, to utilize three levers that begin to maximize the potential of offshore procurement efforts.