Before changing your present sourcing strategy to take advantage of lower labor or duty costs, make sure your financial plan is comprehensive and includes country risk analysis and logistics lead-time analysis.
A comprehensive strategic sourcing plan outlines best, probable, and worst case scenarios, as well as factoring in the lower cost opportunity. A complete plan assesses the known risks, evaluates the logistic change to your supply chain, and integrates these factors into your plans.
Why not let Leaphart + Associates, Inc. guide you through the sourcing process.
We understand the international logistics pipeline from source to destination and the government barriers in between. We look at the cost in dollars and cents, and then in baht, yen and shillings. We calculate time as money. Inventory carrying cost is a factor. We run the numbers and then research the "soft stuff" about weather, bandits, sailing schedules and holidays. We detail all the factors that will make or break your production schedules and ultimately your sales for the month in which you need them.
Where optimizing computer databases and landed cost analysis leave off, we begin. Not only do we compare cost by source destination, we also review the impact of currency movement on material cost, inventory carrying cost vs. transportation expense, lead-time analysis, and country risk analysis.
With all the information gathered, we make recommendations and advise the level of risk and market expectations you can expect. You decide on the strategy that meets your risk criteria and your long range financial plan.
We are recognized leaders in providing the information you need to make the right decisions for your company.
For more information, contact Ro Leaphart at 510-521-2112.
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