In today’s rapidly evolving global economy, companies can no longer rely solely on chasing the lowest production costs. For many years, organizations pursued low cost country sourcing as the primary procurement strategy—moving manufacturing and supplier contracts to countries offering the cheapest labor and materials. While this method often delivered short-term savings, it also...

Due to rising labor costs in many international supply chains, logistics bottlenecks, geopolitical risks, and increasing pressure for sustainability, the old strategy of sourcing from the “lowest cost country” simply is not enough. While sourcing from the lowest cost country probably allowed some short-term savings, it probably also introduced higher risks for poor quality,...