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Publish Date

Dec 18, 2020

Geopolitics, tariffs and trade fluctuations, shifting costs and capacity, and a global pandemic that disrupted business globally – if the last few months have taught us anything, it’s the power of resiliency.

Organizations learned the hard way that single sourcing from the lowest cost provider introduces significant risk, especially in instances where that strategy is used without backup plans to allow for exchange of either suppliers or geographies. This, combined with promising new entries on the global stage, means many companies are reevaluating how to balance cost competitiveness and risk when sourcing raw materials, manufactured goods and services.

What are Best Cost Countries?

Best cost countries are often erroneously equated with low cost countries, but while the latter may offer the lower price, underlying factors associated with doing business in and with these countries can collectively produce an unfavorable total cost to the company.

Evaluating low cost countries based on labor, materials, logistics, inventory, payment terms, trade considerations and others, helps companies determine the location or locations where their total cost of ownership is optimized – their best cost countries.

Change is the constant. Learn more about how A&M applies leading practices and the latest global manufacturing and sourcing data to help clients manage change, and identify new options that address total cost and supply chain risk. Contact us today.

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Authors

Sean Laffere

Sean Laffere

Managing Director

Sean Laffere is a Managing Director with Alvarez & Marsal’s Corporate Performance Improvement (CPI) practice in Houston. He is also the National Solution Leader for CPI’s Supply Chain Services practice. Mr. Laffere specializes in financial supply chain and operations improvement and his focus areas include asset and fleet management, the procure-to-pay and order-to-cash business cycles, contract management, material planning, working capital optimization, and business process optimization.
 Christopher Kulp

Christopher Kulp

Managing Director

Christopher Kulp is a Managing Director with Alvarez & Marsal Private Equity Services Operations Group in New York. He leads the Procurement and Sourcing group. With more than 26 years of consulting and industry experience, Mr. Kulp brings significant expertise in delivering EBIT improvement through sourcing, procurement and broader supply chain transformation.
How Jit Lim

How Jit Lim

Managing Director

Russell Hunt

Russell Hunt

Managing Director

Russell Hunt is a Managing Director with Alvarez & Marsal Automotive and Industrials Group in Houston. He has more than 30 years of experience in the automotive and industrials consulting areas, implementing sustained performance improvement in multinational corporations and middle-market companies. His operations and supply chain focus areas include engineering, manufacturing, procurement (transformation, strategic sourcing, P2P), M&A assessments, synergies, and implementation.
Thorsten Schaefer

Thorsten Schaefer

Senior Director

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