By Jake Kanter
I arrived in Prague on Tuesday and it is cold, the temperature has even dipped below six degrees. But the reason for my visit seems to be a very hot topic in procurement, such is the discussion surrounding low-cost country sourcing.
Although among some of the delegates ‘low cost country sourcing’ seems to be a bit of a dirty phrase. Many have shaken their heads when it is mentioned and others have even completely rejected the term, which seems odd given the tag line of the conference is “everything you need to know to make low cost country sourcing work for you”.
Instead, the strong European contingent prefer their own descriptions. Uwe Schulte, vice president global supply management at Unilever, said the company has abandoned the term - instead referring to countries such as China and India as “high opportunity regions”. This is to indicate that the issue is securing good value, rather than exclusively low costs.
Has your organisation shunned universal procurement terms for bespoke descriptions? What do you think of Unilever’s description of low-cost country sourcing?