Tuesday Musings on Global Sourcing

While short, I thought that this article in Supply Management had some great insights on what global sourcing is really about. To wit, "Low-cost sourcing is not about a place or country, it's the process of being able to move quickly ... Regions that offer low costs often enjoy an influx of foreign investment, followed by a local boom, which can then stop them being the cheapest option. It is at this stage when the process of quickly changing suppliers to a new low-cost area becomes necessary [that] purchasers must check continuously to ensure the countries they are using remain competitive." Having personally observed inflationary pressures in at least one category primarily due to commodity price increases in China, Supply Management's insights certainly ring true for me. I continue to remain impressed with the insights and news in the British trade rag, earning it a "jolly good read" designation in the Spend Matters hall of fame.

On another China note, Michael Lamoureux, flying high in Canada, made a good argument against making an unprepared parachute jump into China sourcing last week. Despite Michael's set-up that I would probably disagree with him, we probably share more similar thoughts in common on the subject than would first appear on the surface. Stay tuned later this week as I offer a response to my loquacious -- yet highly informed and insightful -- Canadian neighbor. The puck will be coming back into his court shortly!

Jason Busch

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