Strategic Supply Management

Hidden Cost in Low Cost Producing Countries

1. Introduction/Overview
   1. Overview
   2. Impact and Upside to Organizations
   3. Long-Term Implications for Organizations
   
   
2. Foundation and Definitions
   1. Global Acquisition Strategy
   2. Outsourcing
   3. Offshoring
   4. Insourcing
   5. Other Methods
   
   
3. Why We Need to Go Abroad
   1. Company Mandates
   2. Competitive Necessities
   3. Why Your Company Goes Abroad
   4. Article
   
   
4. Benefits of Looking Abroad
   1. What Attracts You to the Global Marketplace
      1. Cost
      2. Quality
      3. Concessions
      4. Guarantee of Supply
      5. Unavailability of Goods Domestically
      6. Faster Delivery
      7. Better Technical Service
      8. Technology
      9. Marketing Tool
      10. Tie-In With Foreign Subsidiaries
      11. Competitive Clout
      12. Counter-Trade
      13. Others ...
      14. Article Profile
   
   
5. Hidden Costs Associated with Low Cost Countries
   1. Understand the Costs Implied and Buried in Overseas Transactions
   2. Specific Costs Often Over Looked
      1. Transaction Costs
      2. Taxes (VATs, GATs ...)
      3. Administrative Time
      4. Increased Buffer Inventory
      5. Increased Risk (Natural)
      6. Cost and Risks
      7. Tariffs
      8. Currency Creep
      9. Payments
      10. Insurance
      11. Government Intervention
      12. Placing Purchase Order
      13. Legalities
      14. Others …
      15. Article Profile
   
   
6. Successful Strategies for Competing and Surviving in Low Cost Producing Countries
   1. Expect Change
   2. Looking Outward - Trends and Opportunities
   3. Must Maintain a Diversified Customer Base
   4. Be Constantly Evolving-Changes in the Environment
   5. Aggressively Sell and Market
   6. They Develop New Product to Meet Customer Needs
   7. Opportunities to Meet the Best Opportunities
   8. They Shift Focus to New Markets Which Offer Better Opportunities
   9. They Understand and Shift Competitive Advantage
   10. Others...
   11. Article Profile
   
   
7. Summary & Conculsion