India, China to continue as leading sourcing hubs for retail

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New Delhi, Jun 16 (UNI) Even as concerns over rising cost, quality and environmental issues surround the global markets, China and India are expected to remain the leading sourcing hubs for the retail and consumer sectors globally in the coming years, a latest PwC report says.

According to report 'Global Sourcing: Shifting Strategies' by PricewaterhouseCoopers (PwC), cost, quality and the environment will play an increasingly important role as companies seek to achieve newer heights of performance and competitive advantage from the global sourcing programmes.

''Our feeling is that China will continue to be the leader in terms of sourcing activities for many years to come, however, concern over rising costs, carbon footprint and other issues may cause companies to step up purchases in other countries over time,'' the report says.

While China is the top destination for global sourcing activities with 83 per cent of companies, India follows at the second place with 58 per cent.

''Global sourcing is experiencing robust growth with increased globalisation. While cost is still the key driver of global sourcing activities, mature companies are shifting focus to gain greater efficiency in competitive market focussing on better quality products and collaborative supplier relationships,'' PwC India Head (Retail and Consumer) N V Sivakumar said.

For success, companies need to adapt their organisation structure and processes to manage the supply chain risks, minimise impact on environment, as well as measure and maximise cost savings, he added.

UNI SR AK RN1701

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