Indonesia To Compete With China And India As A Strategic Sourcing Location
Like it or not, business today is different from what it was a decade ago. The economies today are even more globalised than they were before, and as a result of this globalization, procurement has taken on greater strategic importance for conglomerates that have been sourcing from China and India for some time now.
- (1888PressRelease) August 25, 2010 - Sharul Nizam, Head of Group Procurement at Time Dot Com Berhad, explains that although companies have been sourcing from China and India for years, new players could be added to the mix to provide competition for the two Asian giants. "If we look at an Asia perspective, for the next 5 years I foresee that China and India will still remain the low-cost sourcing options in Asia but I also foresee that there will be a new country emerging as an alternative to both countries. That country would be Indonesia," he said.
But just like how procurement today is different than what it was ten years ago, Nizam, doesn't expect too many changes in the procurement environment throughout Asia. "In my opinion 10 years is not such a long time and I foresee that there is not much difference compared to what we are seeing now," he said.
"Just compare things now with what was happening 10 years ago. Anyway in my personal opinion, both China and India will still be the main areas for low cost sourcing in Asia but as mentioned above, I am expecting new countries to emerge as an alternative to both China and India. The Rising cost of delivered goods or freight cost will continuously give pressure to the total cost and this is very much related to the oil price. Geographical proximity will be main factor for out-sourcing and I foresee that Asia will be less of a focus for US companies and Mexico will continuously be the main focus / alternative to Asia. For European companies, Eastern Europe will also be the main focus. " added Nizam.
Learn from leading procurement experts such Sharul Nizam and PepsiCo International's S. Venkatesh who will be speaking at the 9th annual Procurement Asia Summit. For more details on the summit please visit www.procurementsummit.com
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