Flexible production is the key to global challenge
Purchasers should be involved in designing products so that they can help make sure production can be switched from one supplier to another quickly, according to procurement specialists Vendigital.
The comment follows a survey of purchasing directors and managers at major manufacturing companies which found that most believed their suppliers in lowcost countries would become uncompetitive within three years.
More than half said it could take only one or two years.
Of those questioned 97 per cent sourced from low-cost countries. China was the main source, followed by India and Poland.
Vendigital director Adrian Griffiths said: “Everyone is going to China now but it could cease to be the lowest cost country very quickly.
“Purchasers need to think about how they can move production.
“Procurement needs to be involved in the design of goods much earlier so that production can be much more flexible to take advantage of changes in the global marketplace.”
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