Companies looking to reduce costs can benefit from low-cost country sourcing strategies, but it can be difficult to determine where to begin. This post will provide insight into the primary considerations to consider when building an effective low-cost country procurement strategy. Let us delve deeper into the components of a successful low-cost country sourcing strategy. 

Consider More than Just Labor and Production Costs 

When considering a sourcing strategy for low-cost country procurement, it is important to look beyond just the low labor and production costs. You must also evaluate the country’s financial and political stability, as well as the quality of its resources and infrastructure. Additionally, the country’s labor laws, environmental regulations, and enforcement policies should be considered. By doing this, the goal of sourcing from a low-cost country will be met without any hidden costs or risks. 

Do not Just Rely on Virtual Meetings with Foreign Manufacturers 

When engaging in a low-cost country procurement sourcing strategy, it is essential to not only rely on virtual meetings with foreign manufacturers. Although virtual meetings can be a valuable tool in providing an initial introduction, they should not be the only method of communication used. It is important to make sure that physical visits to the manufacturers’ facilities are also conducted, as it is a wonderful way to observe the production environment and build relationships with the manufacturers. If you do not have the time to visit the place yourself, you can hire the services of a reputable sourcing agency. They can carefully check the manufacturing facilities on your behalf.  

Check to See Whether the Items Satisfy Legal Requirements 

When sourcing items from low-cost countries, it is essential to ensure the producers you are dealing with meet the legal requirements and standards. This includes confirming their registration, license, and accreditation status, as well as verifying their compliance with local laws and regulations. A trustworthy sourcing agent can be a huge help in this process because they can give you detailed background information on suppliers and make sure they follow the law. 

Longer Contracts are Preferable to Shorter Ones 

Longer contracts are preferable to shorter ones when engaging in low-cost country sourcing (LCCS). By committing to a longer contract, suppliers can be provided with a reliable revenue stream, and these contracts can help to secure better pricing and terms. Furthermore, longer contracts allow for greater flexibility in terms of product specifications, delivery schedules, and requirements for product testing and quality assurance. Additionally, longer contracts can assist in building better relationships between the supplier and buyer, which can further help to build trust and increase collaboration. 


The key to a successful sourcing strategy for low-cost country procurement is to partner with a reliable and experienced sourcing agent. This agent should be well-versed in the global market and capable of providing the necessary assistance in terms of strategic sourcing, cost management, supplier selection, and risk management. Additionally, they should be able to provide access to the best quality resources and help mitigate the risks associated with low-cost country procurement. A trustworthy sourcing agent should be able to keep up with the constantly changing global market and give the right advice to make sure everything goes well. 

Share This: