Thursday, November 20, 2008
Strategic Sourcing News
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Companies looking closer to home as soaring shipping costs take hold
The increased cost of transportation across the world could see a rise in local sourcing, a new report from PricewaterhouseCoopers has claimed.
“Global Sourcing: Shifting Strategies”, said that global retailers may soon begin looking closer to home as high shipping costs from countries such as China and India take their toll.
According to the report, soaring oil prices, record ship-hiring rates, and huge hikes in the price of food were prompting companies to find reliable suppliers within their own borders.
According to the PwC survey, which involved interviews with 59 executives in 8 countries, cost inflation is the top concern for three-quarters of global retailers and consumer companies.
However, nearly all companies (90 percent) said that they expected quality control to replace costs as their top concern in the future.
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