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Maximizing Savings via Optimal Source Country Selection for U.S. Procurement: Predicting Medium & Long-Term Price Risk & Behavior Before Selecting and Committing, New Report Launched

We consistently go out of our way to avoid claiming anything that might be perceived as exaggerated about any of our reports. We people of Scandinavian origin are a modest people as a whole. We tend to under sell ourselves to our own detriment. So we are uncomfortable making the claim that Applying Source Country Insights in this Report will Payback Rapidly for You.

But the further this analysis proceeded, and the results became clearer, it became simply incredible that so few sourcing organizations are aware of the huge and likely changes to their selected suppliers cost structures over the period of time that they have committed themselves to. Here is what we found:

The average Source Price for the 30 potential source countries increased over 10 years by +44%, a +3.7% CAGR [Compound Annual Growth Rate]. Even a +3.7% CAGR would be impossible for a supplier anywhere to keep holding to an original fixed price agreement. But it is the range that is truly eye opening.

Becoming Cheaper – On the one hand there are a handful of supplier countries that are becoming consistently less expensive for the suppliers. The best of those has become more cost competitive by over 17% in the past 10 years. If you had a fixed price agreement with them you will have left money on the table.

Becoming Much More Costly – At the other extreme, the worst country, one that has absolutely been included in many U.S. companies RFQ distributions, is now +121% more costly today than 10-years ago. That is, their costs are 2.2 times as high today as they were 10-years ago. And for a two-and-a-half year period of time in the years 2009 to 2012 they were over +150% to +187% [2.5-2.9 times as high] as at the inception 10 years ago.

This report provides:

  • A full explanation of the economic modeling methodology employed
  • The detailed results for each of 30 potential source countries to use for your own analysis of source country options
  • Walks you through an example of the use of the data in your own source country selection work using the most common 8 source countries as the examples.
  • Armed with this information you will have all that you need to estimate the likely future cost behavior for each of the supplier quotes that you have based upon the country that they are in. And to often determine which countries to include in a request for quotation prior to sending them out.

Spanning over 64 pages “Maximizing Savings via Optimal Source Country Selection for U.S. Procurement: Predicting Medium & Long-Term Price Risk & Behavior Before Selecting and Committing” report Covering Executive Summary, Introduction, The Methodology, The Results for 30 Potential Source Countries, Company Profile.

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