Low Cost Country Sourcing

Low cost country sourcing [LCCS] is a procurement strategy involving sourcing categories from countries with lower labour and production costs in order to minimise total cost. This links low cost country sourcing with global sourcing strategies. Low cost countries include China, India, Malaysia, Indonesia, Thailand, Vietnam and Brazil. The focus on ‘low cost’ highlights that the strategy is not necessarily low risk. Supply chains are often elongated with greater risk of interruption. If the source of lower cost is lower wages, so-called labour market arbitraging, this may also present issues if the buyer has a corporate social responsibility policy requiring that wages should meet local standards. See also Sourcing.

« Back to Glossary Index

Discover the world’s largest Glossary of Procurement terms

With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.