Sourcing in low cost countries - May 2006

International companies are increasingly turning to Central and Eastern Europe (CEE) as a source of raw materials, components, finished products and staff.
With GDP per capita and wages four to six times lower than in Western Europe, tariff free trade with the old European Union, well educated people, intellectual property safeguards based on European standards, and steady investment in infrastructure, exports from the region are rising fast.
Successful sourcing strategies in CEE require different processes to those which work in Asia.
Companies that aim to apply their global sourcing model to CEE often cannot find the suppliers they are looking for, while their competitors report major successes.
This article highlights the keys to successful sourcing based on 15 years of business experience in the CEE region, providing purchasing support and advice to the purchasing departments of large international corporations.