Hidden Non-Financial Impact of Low Cost Country Sourcing

Author(s):

William L. Michels, C.P.M.

Peter V. Poggi, MBA

95th Annual International Conference Proceedings - 2010 - San Diego, CA

Abstract

The financial advantages and risks of low cost country (LCC) sourcing are becoming fairly well understood. However, purchasing and supply chain managers also need to understand the hidden non-financial impact of LCC Sourcing on their own company, particularly in the home country. LCC sourcing will change the way their performance is measured and their company's culture, and most likely contribute to a turnover of personnel, including top management, as talent is upgraded.