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Opportunity v. Risk in Low-Wage Country Sourcing

If anything has given companies an incentive to focus on the risk in their supply chain, it is the rise of low-wage country sourcing as a way of competing on a global scale. When we talk about countries being ‘low cost’, what we actually mean is ‘low-wage’. After all, alternate regulations and raw material availability aside, it is the cost of labor that varies the most between different parts of the world. Labor rates therefore represent the largest portion of procurement’s opportunity to reduce cost. Low wage just doesn’t sound as ‘nice’ as......

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