Economic Strategic Supplier Sourcing

FiFab can help your company in the purchase of components from low-cost country suppliers. These countries can provide lower unit costs due to a combination of lower labour and overhead costs and the Far East economic boom. And those savings present compelling reasons for companies to migrate manufacturing operations to low-cost areas.

If, for example, the cost basis is 100 points for a component manufactured in UK and 70 points for the same component manufactured in a low-cost country, the gross savings is 30 points. Shipping the component to Britain and customs charges may add another 10 points, bringing the component’s total cost to 80 points. The net savings of 20 points may still be enough to warrant sourcing that component.

The competitive and bottom-line benefits are attractive to many companies. That’s why, according to Aberdeen Group: 60 percent of manufacturers now source from low-cost countries as part of their low-cost sourcing strategies,

  Source: Aberdeen Group, Inc. Low-Cost Country Sourcing Success Strategies — Maximizing and Sustaining the Next Big Supply Savings Opportunity, June 2005.

Sourcing from these countries can be extremely complicated due to tariffs, language barriers, logistics, and import/export restrictions.  FiFab has formed strategic alliances throughout the world to help you save time and energy in strategic sourcing.

Combined with our years of experience in quality management on Lean Manufacturing we can find the right products, services, and suppliers to effectively reduce your spend and meet your organisational needs. 

Our strategic sourcing process will pre-qualify suppliers based on quality, timely delivery, competitive pricing and the overall fit with your needs.

The order process, inspection and logistics will be undertaken by full-time UK staff.